[Congressional Record Volume 172, Number 48 (Tuesday, March 17, 2026)]
[Senate]
[Pages S1108-S1111]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 4410. Mr. WHITEHOUSE submitted an amendment intended to be
proposed by him to the bill S. 1383, to establish the Veterans Advisory
Committee on Equal Access, and for other purposes; which was ordered to
lie on the table; as follows:
In lieu of the matter proposed to be inserted, insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Big Oil Windfall Profits Tax
Act''.
SEC. 2. WINDFALL PROFITS TAX.
(a) In General.--Subtitle E of the Internal Revenue Code of
1986 is amended by adding at the end thereof the following
new chapter:
``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL
``Sec. 5896. Imposition of tax.
``Sec. 5897. Definitions and special rules.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed
under this title, in each calendar quarter there is hereby
imposed on any covered taxpayer an excise tax at the rate
determined under subsection (b) on--
``(1) each barrel of taxable crude oil extracted by the
taxpayer within the United States and removed from the
property of such taxpayer during the calendar quarter, and
``(2) each barrel of taxable crude oil entered into the
United States during the calendar quarter by the taxpayer for
consumption, use, or warehousing.
``(b) Rate of Tax.--
``(1) In general.--The rate of tax imposed by this section
on any barrel of taxable crude oil for any calendar quarter
is the product of--
``(A) 50 percent, and
``(B) the excess (if any) of--
``(i) the average price of a barrel of Brent crude oil over
the covered calendar quarter, over
``(ii) the average price of a barrel of Brent crude oil
over the period beginning on January 1, 2025, and ending on
December 31, 2025.
``(2) Inflation adjustment.--
``(A) In general.--In the case of a calendar quarter
beginning in any taxable year beginning after 2026, the
amount determined under paragraph (1)(B)(ii) shall be
increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable
year begins, determined by substituting `2025' for `2016' in
subparagraph (A)(ii) thereof.
``(B) Rounding.--If any dollar amount, after being
increased under subparagraph (A), is not a multiple of $0.50,
such dollar amount shall be rounded to the next lowest
multiple of $0.01.
[[Page S1110]]
``(c) Fractional Part of Barrel.--In 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.
``SEC. 5897. DEFINITIONS AND SPECIAL RULES.
``(a) Definitions.--For purposes of this chapter--
``(1) Covered taxpayer.--
``(A) In general.--The term `covered taxpayer' means, with
respect to any calendar quarter, any taxpayer if--
``(i) the average daily number of barrels of taxable crude
oil extracted and imported by the taxpayer for calendar year
2025 exceeded 300,000 barrels, or
``(ii) the average daily number of barrels of taxable crude
oil extracted and imported by the taxpayer for the calendar
quarter exceeds 300,000.
``(B) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52 or
subsection (m) or (o) of section 414 shall be treated as one
person for purposes of paragraph (1).
``(2) Taxable crude oil.--The term `taxable crude oil'
includes crude oil, crude oil condensates, and natural
gasoline.
``(3) Barrel.--The term `barrel' means 42 United States
gallons.
``(4) United states.--The term `United States' has the same
meaning given such term under section 4612.
``(b) 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 on any taxable
crude oil.
``(c) Records and Information.--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.
``(d) Return of Windfall 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.
``(e) 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. Windfall Profit on Crude Oil''.
(c) Effective Date.--
(1) In general.--The amendments made by this section shall
apply to crude oil removed or entered after December 31,
2025, in calendar quarters ending after such date.
(2) Special rule for certain quarters during 2026.--In the
case of any calendar quarter ending before July 1, 2026, the
tax imposed under section 5896 of the Internal Revenue Code
of 1986 (as added by this section) shall not be due before
September 30, 2026.
SEC. 3. GASOLINE PRICE REBATES.
(a) In General.--Subchapter B of chapter 65 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 6436. 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 December 31,
2025, 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 Protect
Consumers from Gas Hikes 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) $150,000 in the case of a joint return,
``(B) $112,500 in the case of a head of household, and
``(C) $75,000 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) Regulations.--The Secretary shall prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out the purposes of this section.
``(f) Outreach.--The Secretary shall carry out a robust and
comprehensive outreach program to ensure that all taxpayers
learn of their eligibility for the credits allowed under this
section and are provided assistance in claiming such
credits.''.
(b) Treatment of Certain Possessions.--
(1) Payments to possessions with mirror code tax systems.--
The Secretary of the Treasury shall pay to each possession of
the United States which has a mirror code tax system amounts
equal to the loss (if any) to that possession by reason of
the amendments made by this section. Such amounts shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(2) Payments to other possessions.--The Secretary of the
Treasury shall pay to each possession of the United States
which does not have a mirror code tax system amounts
estimated by the Secretary of the Treasury as being equal to
the aggregate benefits (if any) that would have been provided
to residents of such possession by reason of the amendments
made by this section if a mirror code tax system had been in
effect in such possession. The preceding sentence shall not
apply unless the respective possession has a plan, which has
been approved by the Secretary of the Treasury, under which
such possession will promptly distribute such payments to its
residents.
(3) Inclusion of administrative expenses.--The Secretary of
the Treasury shall pay to each possession of the United
States to which the Secretary makes a payment under paragraph
(1) or (2) an amount equal to the increase (if any) of the
administrative expenses of such possession--
(A) in the case of a possession described in paragraph (1),
by reason of the amendments made by this section, and
(B) in the case of a possession described in paragraph (2),
by reason of carrying out the plan described in such
paragraph, or
the amount described in subparagraph (A) shall be determined
by the Secretary of the Treasury based on information
provided by the government of the respective possession.
(4) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United
States income taxes under section 6434 of the Internal
Revenue Code of 1986 (as added by this section) to any
person--
(A) to whom a credit is allowed against taxes imposed by
the possession by reason of the amendments made by this
section, or
(B) who is eligible for a payment under a plan described in
paragraph (2).
(5) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income
tax system of such possession if the income tax liability of
the residents of such possession under such system is
determined by reference to the income tax laws of the United
States as if such possession were the United States.
(6) Treatment of payments.--For purposes of section 1324 of
title 31, United States Code, the payments under this
subsection shall be treated in the same manner as a refund
due from a credit provision referred to in subsection (b)(2)
of such section.
(c) Administrative Provisions.--
[[Page S1111]]
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the
Internal Revenue Code of 1986 is amended by striking ``and
6433'' and inserting ``6433, and 6436,''.
(2) Conforming amendments.--
(A) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ``6436,'' after
``6433,''.
(B) 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. 6436. Gasoline price rebates.''.
SEC. 4. PROTECT CONSUMERS FROM GAS PRICE HIKES FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 9512. PROTECT CONSUMERS FROM GAS PRICE HIKES FUND.
``(a) Establishment and Funding.--There is hereby
established in the Treasury of the United States a trust fund
to be referred to as the `Protect Consumers from Gas Hikes
Fund', consisting of such amounts as may be appropriated or
credited to such trust fund as provided for in this section
and section 9602(b).
``(b) Transfers to the Protect Consumers From Gas Price
Hikes Fund.--There are hereby appropriated to the Protect
Consumers from Gas Hikes Fund amounts equivalent to the taxes
received in the Treasury under section 5896.
``(c) Use of Funds.--The Secretary shall pay from time to
time from the Protect Consumers from Gas Price Hikes Fund to
the general fund of the Treasury amounts equal to the amounts
of refunds provided under section 6436.''.
(b) Clerical Amendment.--The table of sections for
subchapter A of chapter 98 of such Code is amended by adding
at the end the following new item:
``Sec. 9512. Protect Consumers from Gas Price Hikes Fund.''.
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