Requiring Excise for Migrant Income Transfers Act” or the “REMIT Act.

Summary

Raises the federal excise tax on remittance transfers from 1% to 15%, while allowing remittance providers to exclude transfers sent by verified U.S. citizens or nationals. Creates a new refundable federal income tax credit to reimburse individuals for excise taxes paid, requires remittance providers to file new IRS reports and give statements to customers, and adjusts related penalty and tax-table rules. Most statutory changes are applied as if included in earlier legislation (Public Law 119–21); the new refundable credit is limited to taxable years ending after December 31, 2025. The bill adds compliance and reporting obligations for remittance businesses and eligibility and documentation rules for individuals claiming the credit.

• Excise tax on remittance transfers rises from 1% to 15% under IRC section 4475.
• Remittance providers may exempt transfers sent by verified U.S. citizens or nationals from the excise tax.
• Creates a new refundable income tax credit (IRC section 36C) equal to excise taxes paid, with SSN and documentation requirements.
• Requires remittance transfer providers to file IRS returns and give statements to senders reporting aggregate and certain individual transfer and tax amounts (new IRC section 6050BB).
• Modifies associated penalty rules and tax-table provisions to reflect the new tax and reporting duties.
• Most changes are applied as if included in a prior law (Public Law 119–21); the refundable credit is effective for taxable years ending after Dec 31, 2025.
• Places new compliance, verification, and recordkeeping duties on money transmitters, banks, and fintech remittance services.
• Eligibility for the refundable credit depends on taxpayer identification and substantiation; not all senders will qualify.