1.Temporary windfall profits
tax
(a)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:
56Temporary
windfall profits on crude oil
Sec. 5896. Imposition of
tax.
Sec. 5897. Windfall profit;
removal price; adjusted base price; qualified investment.
Sec. 5898. Special rules and
definitions.
5896.
(a)In addition to any
other tax imposed under this title, there is hereby imposed on any integrated
oil company (as defined in section 291(b)(4)) an excise tax equal to 50 percent
of the windfall profit from all barrels of taxable crude oil removed from the
property during taxable years beginning in 2005.
(b)Fractional part
of barrelIn the case of a
fraction of a barrel, the tax imposed by subsection (a) shall be the same
fraction of the amount of such tax imposed on the whole barrel.
(c)The tax imposed by
this section shall be paid by the producer of the taxable crude oil.
5897.Windfall profit;
removal price; adjusted base price
(a)For purposes of this
chapter, the term windfall profit means the excess of the removal
price of the barrel of taxable crude oil over the adjusted base price of such
barrel.
(b)For purposes of this
chapter—
(1)Except as otherwise
provided in this subsection, the term removal price means the
amount for which the barrel of taxable crude oil is sold.
(2)Sales between
related personsIn the case
of a sale between related persons, the removal price shall not be less than the
constructive sales price for purposes of determining gross income from the
property under section 613.
(3)Oil removed
from property before saleIf
crude oil is removed from the property before it is sold, the removal price
shall be the constructive sales price for purposes of determining gross income
from the property under section 613.
(4)Refining begun
on propertyIf the
manufacture or conversion of crude oil into refined products begins before such
oil is removed from the property—
(A)such oil shall be treated as removed on the
day such manufacture or conversion begins, and
(B)the removal price shall be the constructive
sales price for purposes of determining gross income from the property under
section 613.
(5)The term property has the
meaning given such term by section 614.
(c)Adjusted base
price definedFor purposes of
this chapter, the term adjusted base price means $40 for each
barrel of taxable crude oil.
5898.Special rules and
definitions
(a)Withholding and
deposit of taxThe Secretary
shall provide such rules as are necessary for the withholding and deposit of
the tax imposed under section 5896 on any taxable crude oil.
(b)Each taxpayer
liable for tax under section 5896 shall keep such records, make such returns,
and furnish such information (to the Secretary and to other persons having an
interest in the taxable crude oil) with respect to such oil as the Secretary
may by regulations prescribe.
(c)Return of
windfall profit taxThe
Secretary shall provide for the filing and the time of such filing of the
return of the tax imposed under section 5896.
(d)For purposes of this chapter—
(1)The term producer means the
holder of the economic interest with respect to the crude oil.
(2)
(A)The term crude
oil includes crude oil condensates and natural gasoline.
(B)Exclusion of
newly discovered oilSuch
term shall not include any oil produced from a well drilled after the date of
the enactment of the chapter, except with respect to any oil produced from a
well drilled after such date on any proven oil or gas property (within the
meaning of section 613A(c)(9)(A)).
(3)The term barrel means 42
United States gallons.
(e)Adjustment of
removal priceIn determining
the removal price of oil from a property in the case of any transaction, the
Secretary may adjust the removal price to reflect clearly the fair market value
of oil removed.
(f)The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out the purposes of
this
chapter.
.
(b)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. Temporary windfall
profit on crude
oil.
.
(c)Deductibility
of windfall profit taxThe
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 windfall profit tax imposed by section
5896.
.
(d)The amendments made by
this section shall apply to taxable years beginning in 2005.
2.
(a)Subchapter B of
chapter 65 of the Internal Revenue Code of 1986 (relating to rules of special
application in the case of abatements, credits, and refunds) is amended by
adding at the end the following new section:
6430.
(a)Except as otherwise
provided in this section, each individual shall be treated as having made a
payment against the tax imposed by chapter 1 for the taxable year beginning in
2005 in an amount equal to $450.
(b)The Secretary shall
remit to each taxpayer the payment described in subsection (a) not later than
March 1, 2006.
(c)Certain persons
not eligibleThis section
shall not apply to—
(1)any taxpayer who did not have any adjusted
gross income for the preceding taxable year or whose adjusted gross income for
such preceding taxable year exceeded $40,000,
(2)any individual with respect to whom a
deduction under section 151 is allowable to another taxpayer for the taxable
year beginning in 2005,
(3)any estate or trust, or
(4)any nonresident alien
individual.
.
(b)Section 1324(b)(2)
of title 31, United States Code, is amended by inserting before the period
, or from section 6430
.
(c)The table of
sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:
Sec. 6430. Household
rebate.
.
(d)The amendments made by
this section shall take effect on the date of the enactment of this Act.