38 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: SUBCHAPTER E—Carbon dioxide and other greenhouse gas emission fees . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2018. II Returning fee revenue to the American people 201. Establishment of refundable credit for workers (a) In general Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section: 36A. Carbon fee offset credit (a) In general In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— (1) 6.2 percent of the earned income of the taxpayer, or (2) $800 (twice such amount in the case of a joint return). (b) Eligible individual For purposes of this section, the term eligible individual means any individual other than— (1) any nonresident alien individual, (2) 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, and (3) any individual who, for the month of December of the taxable year, was entitled to or eligible for a benefit payment described in paragraph (1) or (2) of section 202(b) of the American Opportunity Carbon Fee Act of 2018 . (c) Earned income (1) In general For purposes of this section, the term earned income has the meaning given such term by section 32(c)(2), except that such term shall not include net earnings from self-employment which are not taken into account in computing taxable income. (2) Certain combat zone compensation For purposes of paragraph (1), any amount excluded from gross income by reason of section 112 shall be treated as earned income which is taken into account in computing taxable income for the taxable year. (d) Inflation adjustment (1) In general In the case of a