Short title

This Act may be cited as the

Federal Gas Tax Suspension and Windfall Profits Tax Act of 2022

Highway fuel tax suspension

(a)

Temporary suspension of highway fuel taxes on gasoline

(1)

In general

Section 4081 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

(f)

Temporary suspension of taxes on gasoline

(1)

In general

During the applicable period, the rate of tax otherwise applicable to gasoline under subsection (a)(2)(A)(i), determined with regard to subsection (a)(2)(B), shall be reduced to zero cents per gallon. (2)

Applicable period

For purposes of this subsection, the term applicable period means the period beginning on the date of the enactment of this subsection and ending on December 31, 2023. (3)

Maintenance of trust fund deposits

In determining the amounts to be appropriated to the Highway Trust Fund under section 9503 and to the Leaking Underground Storage Tank Trust Fund under 9508, an amount equal to the reduction in revenues to the Treasury by reason of this subsection shall be treated as taxes received in the Treasury under this section or section 4041.

(2)

Effective date

The amendment made by this subsection shall take effect on the date of the enactment of this Act. (b)

Floor stock refunds

(1)

In general

If— (A)before the tax suspension date, a tax referred to in section 4081(f)(2) of the Internal Revenue Code of 1986 has been imposed under such Code on any liquid, and (B)on such date such liquid is held by a dealer and has not been used and is intended for sale,

there shall be credited or refunded (without interest) to the person who paid such tax (hereafter in this subsection referred to as the taxpayer), against the taxpayer's subsequent semi-monthly deposit of such tax, an amount equal to the excess of the tax paid by the taxpayer over the amount of such tax which would be imposed on such liquid had the taxable event occurred on the tax suspension date.

(2)

Time for filing claims; certifications necessary to file claims

(A)

In general

No credit or refund shall be allowed or made under this subsection— (i)unless claim therefore is filed with the Secretary before the date which is 6 months after the tax suspension date, and (ii)in any case where liquid is held by a dealer (other than the taxpayer) on the tax suspension date, unless the taxpayer files with the Secretary— (I)a certification that the taxpayer has given a credit to such dealer with respect to such liquid against the dealer's first purchase of liquid from the taxpayer subsequent to the tax suspension date, and (II)a certification by such dealer that such dealer has given a credit to a succeeding dealer (if any) with respect to such liquid against the succeeding dealer's first purchase of liquid from such dealer subsequent to the tax suspension date. (B)

Reasonableness of claims certified

Any certification made under subparagraph (A) shall include an additional certification that the claim for credit was reasonably based on the taxpayer's or dealer's past business relationship with the succeeding dealer. (3)

Definitions

For purposes of this subsection— (A)the terms dealer and held by a dealer have the respective meanings given to such terms by section 6412 of such Code; except that the term dealer includes a producer, and (B)the term tax suspension date means the date of the enactment of this Act. (4)

Certain rules to apply

Rules similar to the rules of subsections (b) and (c) of section 6412 of such Code shall apply for purposes of this subsection. (c)

Floor stocks tax

(1)

Imposition of tax

In the case of any liquid on which tax would have been imposed under section 4081 of the Internal Revenue Code of 1986 during the applicable period but for the amendment made by subsection (a), and which is held on the floor stocks tax date by any person, there is hereby imposed a floor stocks tax in an amount equal to the tax which would be imposed on such liquid had the taxable event occurred on the floor stocks tax date. (2)

Liability for tax and method of payment

(A)

Liability for tax

A person holding a liquid on the floor stocks tax date to which the tax imposed by paragraph (1) applies shall be liable for such tax. (B)

Method of payment

The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe. (C)

Time for payment

The tax imposed by paragraph (1) shall be paid on or before the date which is 6 months after the floor stocks tax date. (3)

Definitions

For purposes of this subsection— (A)

Held by a person

A liquid shall be considered as held by a person if title thereto has passed to such person (whether or not delivery to the person has been made). (B)

Gasoline

The term gasoline has the respective meaning given such term by section 4083 of such Code. (C)

Floor stocks tax date

The term floor stocks tax date means January 1, 2024. (D)

Applicable period

The term applicable period means the period described in section 4081(f)(3) of such Code. (4)

Exception for exempt uses

The tax imposed by paragraph (1) shall not apply to gasoline held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of such Code is allowable for such use. (5)

Exception for fuel held in vehicle tank

No tax shall be imposed by paragraph (1) on gasoline held in the tank of a motor vehicle. (6)

Exception for certain amounts of fuel

(A)

In general

No tax shall be imposed by paragraph (1) on gasoline (other than aviation gasoline) held on the floor stocks tax date by any person if the aggregate amount of gasoline held by such person on such date does not exceed 4,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph. (B)

Exempt fuel

For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5). (C)

Controlled groups

For purposes of this paragraph— (i)

Corporations

(I)

In general

All persons treated as a controlled group shall be treated as 1 person. (II)

Controlled group

The term controlled group has the meaning given to such term by subsection (a) of section 1563 of such Code; except that for such purposes the phrase more than 50 percent shall be substituted for the phrase at least 80 percent each place it appears in such subsection. (ii)

Nonincorporated persons under common control

Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (7)

Other law applicable

All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this paragraph, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081. (d)

Secretary

For purposes of this section, the term Secretary means the Secretary of the Treasury or the Secretary’s delegate. (e)

Sense of Congress

It is the senses of Congress that— (1)consumers immediately receive the benefit of the reduction in taxes resulting from the amendment made by subsection (a), and (2)transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction, including immediate credits to customer accounts representing tax refunds allowed as credits against excise tax deposit payments under the floor stocks refund provisions of subsection (b).

Temporary oil profit fee

(a)

In general

Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new chapter:

Temporary fee on excess oil profit

Sec. 5896. Imposition of fee.

Sec. 5897. Excess profit; etc.

Sec. 5898. Special rules and definitions.

5896.

Imposition of fee

(a)

In general

In addition to any other tax imposed under this title, there is hereby imposed on any applicable taxpayer an excise fee in an amount equal to 50 percent of the excess profit of such taxpayer for such taxpayer’s first taxable year beginning after December 31, 2021. (b)

Applicable taxpayer

For purposes of this chapter, the term applicable taxpayer means any integrated oil company (as defined in section 291(b)(4)).

5897.

Excess profit; etc

(a)

General rule

For purposes of this chapter, the term excess profit means the excess of the adjusted taxable income of the applicable taxpayer for the taxable year over the reasonably inflated average profit for such taxable year. (b)

Adjusted taxable income

For purposes of this chapter, with respect to any applicable taxpayer, the adjusted taxable income for any taxable year is equal to the taxable income for such taxable year (within the meaning of section 63 and determined without regard to this subsection) increased by any interest expense deduction, charitable contribution deduction, and any net operating loss deduction carried forward from any prior taxable year. 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. (c)

Reasonably inflated average profit

For purposes of this chapter, with respect to any applicable taxpayer, the reasonably inflated average profit for any taxable year is an amount equal to the average of the adjusted taxable income of such taxpayer for taxable years beginning during the 2015–2019 taxable year period (determined without regard to the taxable year with the highest adjusted taxable income in such period) plus 10 percent of such average.

5898.

Special rules and definitions

(a)

Withholding and deposit of fee

The Secretary shall provide such rules as are necessary for the withholding and deposit of the fee 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 fee

The Secretary shall provide for the filing and the time of such filing of the return of the fee 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 such Code is amended by adding at the end the following new item:

Chapter 56—Temporary fee on excess oil profit

(c)

Deductibility of fee

The first sentence of section 164(a) of such Code is amended by inserting after paragraph (4) the following new paragraph:

(5)The fee imposed by section 5896.

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.