This is the section of the Economic Growth and Tax Relief Reconciliation Act of 2001 providing the rebate checks to be mailed to all qualifying tax payers during July and August of 2001:

SEC. 6428. ACCELERATION OF 10 PERCENT INCOME TAX RATE BRACKET BENEFIT FOR 2001.

`(a) IN GENERAL- In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by chapter 1 for the taxpayer's first taxable year beginning in 2001 an amount equal to 5 percent of so much of the taxpayer's taxable income as does not exceed the initial bracket amount (as defined in section 1(i)(1)(B)).

`(b) LIMITATION BASED ON AMOUNT OF TAX- The credit allowed by subsection (a) shall not exceed the excess (if any) of--

`(1) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over

`(2) the sum of the credits allowable under part IV of subchapter A of chapter 1 (other than the credits allowable under subpart C thereof, relating to refundable credits).

`(c) ELIGIBLE INDIVIDUAL- For purposes of this section, the term `eligible individual' means any individual other than--

`(1) any estate or trust,

`(2) any nonresident alien individual, and

`(3) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which the individual's taxable year begins.

`(d) SPECIAL RULES-

`(1) COORDINATION WITH ADVANCE REFUNDS OF CREDIT-

`(A) IN GENERAL- The amount of credit which would (but for this paragraph) be allowable under this section shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer under subsection (e). Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1).

`(B) JOINT RETURNS- In the case of a refund or credit made or allowed under subsection (e) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return.

`(2) COORDINATION WITH ESTIMATED TAX- The credit under this section shall be treated for purposes of section 6654(f) in the same manner as a credit under subpart A of part IV of subchapter A of chapter 1.

`(e) ADVANCE REFUNDS OF CREDIT BASED ON PRIOR YEAR DATA-

`(1) IN GENERAL- Each individual who was an eligible individual for such individual's first taxable year beginning in 2000 shall be treated as having made a payment against the tax imposed by chapter 1 for such first taxable year in an amount equal to the advance refund amount for such taxable year.

`(2) ADVANCE REFUND AMOUNT- For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such first taxable year if this section (other than subsection (d) and this subsection) had applied to such taxable year.

`(3) TIMING OF PAYMENTS- In the case of any overpayment attributable to this subsection, the Secretary shall, subject to the provisions of this title, refund or credit such overpayment as rapidly as possible and, to the extent practicable, before October 1, 2001. No refund or credit shall be made or allowed under this subsection after December 31, 2001.

`(4) NO INTEREST- No interest shall be allowed on any overpayment attributable to this subsection.'.

(2) CLERICAL AMENDMENT- The table of sections for subchapter B of chapter 65 is amended by adding at the end the following new item:

(c) CONFORMING AMENDMENTS-

(1) Subparagraph (B) of section 1(g)(7) is amended by striking `15 percent' in clause (ii)(II) and inserting `10 percent.'.

(2) Section 1(h) is amended--

(A) by striking `28 percent' both places it appears in paragraphs (1)(A)(ii)(I) and (1)(B)(i) and inserting `25 percent', and

(B) by striking paragraph (13).

(3) Section 15 is amended by adding at the end the following new subsection:

`(f) RATE REDUCTIONS ENACTED BY ECONOMIC GROWTH AND TAX RELIEF RECONCILIATION ACT OF 2001- This section shall not apply to any change in rates under subsection (i) of section 1 (relating to rate reductions after 2000).'.

(4) Section 531 is amended by striking `equal to' and all that follows and inserting `equal to the product of the

highest rate of tax under section 1(c) and the accumulated taxable income.'.

(5) Section 541 is amended by striking `equal to' and all that follows and inserting `equal to the product of the highest rate of tax under section 1(c) and the undistributed personal holding company income.'.

(6) Section 3402(p)(1)(B) is amended by striking `7, 15, 28, or 31 percent' and inserting `7 percent, any percentage applicable to any of the 3 lowest income brackets in the table under section 1(c),'.

(7) Section 3402(p)(2) is amended by striking `15 percent' and inserting `10 percent'.

(8) Section 3402(q)(1) is amended by striking `equal to 28 percent of such payment' and inserting `equal to the product of the third lowest rate of tax applicable under section 1(c) and such payment'.

(9) Section 3402(r)(3) is amended by striking `31 percent' and inserting `the fourth lowest rate of tax applicable under section 1(c)'.

(10) Section 3406(a)(1) is amended by striking `equal to 31 percent of such payment' and inserting `equal to the product of the fourth lowest rate of tax applicable under section 1(c) and such payment'.

(11) Section 13273 of the Revenue Reconciliation Act of 1993 is amended by striking `28 percent' and inserting `the third lowest rate of tax applicable under section 1(c) of the Internal Revenue Code of 1986'.

(d) EFFECTIVE DATES-

(1) IN GENERAL- Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning after December 31, 2000.

(2) AMENDMENTS TO WITHHOLDING PROVISIONS- The amendments made by paragraphs (6), (7), (8), (9), (10), and (11) of subsection (c) shall apply to amounts paid after the 60th day after the date of the enactment of this Act. References to income brackets and rates of tax in such paragraphs shall be applied without regard to section 1(i)(1)(D) of the Internal Revenue Code of 1986.