subdivision, agency, or instrumentality thereof, or (2) any additional fees imposed by any applicable entity on carryout bags provided to its customers. . (b) Carryout bag credit program Subchapter B of chapter 65 of such Code is amended by adding at the end the following new section: 6431. Carryout bag credit program (a) Allowance of credit If— (1) tax has been imposed under section 4056 on any carryout bag, (2) an applicable entity provides such bag to a customer in a point of sale transaction, and (3) such entity has kept and can produce records for purposes of this section and section 4056 that include— (A) the total number of carryout bags provided to customers for which the tax was imposed under section 4056(a) and the amounts passed through to customers for such bags pursuant to section 4056(e), and (B) the total number of bags for which a refund was provided to customers pursuant to a carryout bag credit program, the Secretary shall pay (without interest) to such entity an amount equal to the applicable amount for each bag provided by such entity in connection with a point of sale transaction. (b) Applicable amount For purposes of subsection (a), the applicable amount is an amount equal to— (1) in the case of an applicable entity that has established a carryout bag credit program, $0.10, and (2) in the case of an applicable entity that has not established a carryout bag credit program, $0.04. (c) Carryout bag credit program For purposes of this section, the term carryout bag credit program means a program established by an applicable entity which— (1) for each bag provided by the customer to package any items purchased from the applicable entity, such entity refunds such customer $0.05 for each such bag from the total cost of their purchase, (2) separately states the amount of such refund on the receipt of sale provided to the customer, and (3) prominently advertises such program at each entrance and checkout register of the applicable entity. (d) Definitions For purposes of this section, the terms