Crude oil profit tax

(a)

In general

Subtitle E of the Internal Revenue Code of 1986 (relating to alcohol, tobacco, and certain other excise taxes) is amended by adding at the end thereof the following new chapter:

Profit on crude oil

Sec. 5896. Imposition of tax.

Sec. 5897. Applicable profit.

Sec. 5898. Special rules and definitions.

5896.

Imposition of tax

(a)

In general

In addition to any other tax imposed under this title, there is hereby imposed on any applicable taxpayer an excise tax in an amount equal to 50 percent of the applicable profit of such taxpayer. (b)

Applicable taxpayer

For purposes of this chapter, the term applicable taxpayer means any major integrated oil company (as defined in section 167(h)(5)(B), applied by substituting $500,000,000 for $1,000,000,000 in clause (ii) thereof). (c)

Special rule for certain price hikes

If the Secretary, after consultation with the Secretary of Energy and the Chair of the Federal Trade Commission, determines that an applicable taxpayer has raised prices as a result of the tax under subsection (a), such subsection shall be applied by substituting 75 percent for 50 percent. (d)

Termination

No tax shall be imposed under this section after December 31, 2023.

5897.

Applicable profit

(a)

General rule

For purposes of this chapter, the term applicable profit means, with respect to a taxable year, the adjusted taxable income of the applicable taxpayer for any calendar quarter in which the national average price of unleaded gasoline is equal to or greater than the national average price of unleaded gasoline on February 24, 2022. (b)

Adjusted taxable income

For purposes of this chapter, with respect to any applicable taxpayer, the term adjustable taxable income means the taxable income of the taxpayer— (1)increased by— (A)the amount of any bonuses to executive officers, and (B)the amount of any stock buybacks, and (2)reduced by— (A)the amount of any net operating loss deduction under section 172, and (B)any deduction allowable for depreciation, amortization, or depletion.

In the case of any applicable taxpayer which is a foreign corporation, the adjusted taxable income shall be determined with respect to such income which is effectively connected with the conduct of a trade or business in the United States.

5898.

Special rules and definitions

(a)

Withholding and deposit of tax

The Secretary shall provide such rules as are necessary for the withholding and deposit of the tax imposed under section 5896. (b)

Records and information

Each taxpayer liable for tax under section 5896 shall keep such records, make such returns, and furnish such information as the Secretary may by regulations prescribe. (c)

Return of applicable profit tax

The Secretary shall provide for the filing and the time of such filing of the return of the tax imposed under section 5896. (d)

Crude oil

The term crude oil includes crude oil condensates and natural gasoline. (e)

Businesses under common control

For purposes of this chapter, all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person. (f)

Regulations

The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.

(b)

Clerical amendment

The table of chapters for subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

Chapter 56. Profit on crude oil.

(c)

Deductibility of applicable profit tax

The first sentence of section 164(a) of the Internal Revenue Code of 1986 (relating to deduction for taxes) is amended by inserting after paragraph (5) the following new paragraph:

(6)The applicable profit tax imposed by section 5896.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2021.

Gasoline price rebates

(a)

In general

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for each taxable year beginning after the date of the enactment of the Stop Profiting Off Putin’s War Act, an amount equal to the sum of the gasoline price rebate amount for calendar quarters beginning in such taxable year. (b)

Gasoline price rebate amount

For purposes of this section— (1)

In general

The term gasoline price rebate amount means, with respect to any taxpayer for any calendar quarter beginning in a taxable year, an amount determined by the Secretary not later than 30 days after the end of such calendar quarter taking into account the number of eligible individuals and the amount of revenues in the Gas Profit Recovery Fund resulting from the tax imposed by section 5896 for the preceding calendar quarter. (2)

Special rule for joint returns

In the case of an eligible individual filing a joint return, the gasoline price rebate amount shall be 150 percent of the amount determined under paragraph (1) with respect to other taxpayers. (3)

Limitation based on adjusted gross income

The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the eligible individual's adjusted gross income as exceeds— (A)$200,000 in the case of a joint return, (B)$150,000 in the case of a head of household, and (C)$100,000 in any other case. (c)

Eligible individual

For purposes of this section, the term eligible individual means any individual other than— (1)any nonresident alien individual, (2)any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and (3)an estate or trust. (d)

Definitions and special rules

(1)

Dependent defined

For purposes of this section, the term dependent has the meaning given such term by section 152. (2)

Identification number requirement

(A)

In general

In the case of a return other than a joint return, the gasoline price rebate amount in subsection (b)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year. (B)

Joint returns

In the case of a joint return, the gasoline price rebate amount in subsection (b)(1) shall be treated as being— (i)50 percent of the amount otherwise determined without regard to this paragraph if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and (ii)zero if the valid identification number of neither spouse is so included. (C)

Valid identification number

For purposes of this paragraph, the term valid identification number means a social security number issued to an individual by the Social Security Administration on or before the due date for filing the return for the taxable year. (D)

Special rule for members of the Armed Forces

Subparagraph (B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year. (E)

Coordination with certain advance payments

In the case of any payment determined pursuant to subsection (f)(6), a valid identification number shall be treated for purposes of this paragraph as included on the taxpayer’s return of tax if such valid identification number is available to the Secretary as described in such subsection. (F)

Mathematical or clerical error authority

Any omission of a correct valid identification number required under this paragraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission. (3)

Credit treated as refundable

The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. (e)

Coordination with advance refunds of credit

(1)

Reduction of refundable credit

The amount of the credit which would (but for this paragraph) be allowable under subsection (a) for any taxable year shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or, except as otherwise provided by the Secretary, any dependent of the taxpayer) under subsection (f) for such taxable year. 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). (2)

Joint returns

Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (f) 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. (f)

Advance refunds and credits

(1)

In general

Subject to paragraphs (5) and (6), for any rebate taxable year, each individual who was an eligible individual for the applicable taxable year shall be treated as having made a payment against the tax imposed by chapter 1 for such applicable taxable year in an amount equal to advance refund amount for such rebate taxable year. (2)

Advance refund amount

(A)

In general

For purposes of paragraph (1), the advance refund amount for any rebate taxable year is the amount that would allowed as a credit under this section for the applicable taxable year if this section (other than subsection (e) and this subsection) were applied to such applicable taxable year (without regard to any effective date) using the gasoline price rebate amount for the refund taxable year. (B)

Treatment of deceased individuals

For purposes of determining the advanced refund amount— (i)any individual who was deceased before the first day of the rebate taxable year shall be treated for purposes of applying subsection (d)(2) in the same manner as if the valid identification number of such person was not included on the return of tax for the applicable taxable year (except that subparagraph (D) thereof shall not apply), and (ii)notwithstanding clause (i), in the case of a joint return with respect to which only 1 spouse is deceased before the first day of the rebate taxable year, such deceased spouse was a member of the Armed Forces of the United States at any time during the applicable taxable year, and the valid identification number of such deceased spouse is included on the return of tax for the applicable taxable year, the valid identification number of 1 (and only 1) spouse shall be treated as included on the return of tax for the applicable taxable year for purposes of applying subsection (d)(2)(B) with respect to such joint return. (3)

Timing and manner of payments

The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section and determined with respect to any calendar quarter not later than 90 days after the end of such calendar quarter. No refund or credit shall be made or allowed under this subsection after December 31, 2023. (4)

No interest

No interest shall be allowed on any overpayment attributable to this subsection. (5)

Application to individuals who have filed a return of tax for the year after the applicable taxable year

(A)

Application to returns filed at time of initial determination

If, at the time of any determination made pursuant to paragraph (3), the individual referred to in paragraph (1) has filed a return of tax for the individual’s first taxable year beginning after the applicable taxable year, paragraph (1) shall be applied with respect to such individual by substituting taxable year following the applicable taxable year for applicable taxable year. (B)

Additional payment

(i)

In general

In the case of any individual who files, before the additional payment determination date, a return of tax for such individual’s first taxable year beginning after the applicable taxable year, the Secretary shall make a payment (in addition to any payment made under paragraph (1)) to such individual equal to the excess (if any) of— (I)the amount which would be determined under paragraph (1) (after the application of subparagraph (A)) by applying paragraph (1) as of the additional payment determination date, over (II)the amount of any payment made with respect to such individual under paragraph (1). (ii)

Additional payment determination date

The term additional payment determination date means the earlier of— (I)the date which is 90 days after the date specified in section 6072(a) with respect to returns for the taxable year following the applicable taxable year (determined after taking into account any period disregarded under section 7508A if such disregard applies to substantially all returns for such taxable year), or (II)September 1 of the calendar year following the applicable taxable year. (6)

Application to certain individuals who have not filed a return of tax for the preceding two years

In the case of any individual who, at the time of any determination made pursuant to paragraph (3), has filed a tax return for neither the applicable taxable year nor for the year following the applicable taxable year, the Secretary shall, consistent with rules similar to the rules of section 6428A(f)(5)(H)(i), apply paragraph (1) on the basis of information available to the Secretary and shall, on the basis of such information, determine the advance refund amount with respect to such individual without regard to subsection (b)(2) unless the Secretary has reason to know that such amount would otherwise be reduced by reason of such subsection. (7)

Special rule related to time of filing return

Solely for purposes of this subsection, a return of tax shall not be treated as filed until such return has been processed by the Internal Revenue Service. (8)

Applicable taxable year; rebate taxable year

For purposes of this subsection— (A)

Rebate taxable year

The term rebate taxable year means the taxable year for which a credit is allowed under this section. (B)

Applicable taxable year

The term applicable taxable year means the second taxable year preceding the rebate taxable year. (g)

Regulations

The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including— (1)regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection (f) (including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and (2)regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (f), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined. (h)

Outreach

The Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers described in subsection (g)(1) learn of their eligibility for the advance refunds and credits under subsection (f); are advised of the opportunity to receive such advance refunds and credits as provided under subsection (g)(1); and are provided assistance in applying for such advance refunds and credits.