What does Preamble of Big Oil Windfall Profits Tax Act do?

This bill proposes to amend the Internal Revenue Code of 1986. It aims to impose a windfall profits excise tax on crude oil. The collected tax is intended to be rebated back to individual taxpayers.

What does SHORT TITLE. of Big Oil Windfall Profits Tax Act do?

This bill is formally titled the Big Oil Windfall Profits Tax Act

What does WINDFALL PROFITS TAX. of Big Oil Windfall Profits Tax Act do?

This section amends the Internal Revenue Code of 1986 by adding Chapter 56, titled 'Windfall Profit on Crude Oil'. It imposes an excise tax on covered taxpayers based on the extraction or importation of taxable crude oil. The tax rate is calculated as 50 percent of the excess of the average price of Brent crude oil over the average price during 2025. An inflation adjustment is applied to the 2025 price benchmark for calendar quarters beginning after 2026. A 'covered taxpayer' is defined as one who extracted or imported over 300,000 barrels of taxable crude oil in 2025 or in a given quarter. The term 'taxable crude oil' includes crude oil, crude oil condensates, and natural gasoline. The Secretary is required to provide rules for withholding, deposit, records, returns, and regulations related to the tax. The amendments apply to crude oil removed or entered after December 31, 2025. For calendar quarters ending before July 1, 2026, the tax is not due before September 30, 2026.

What does GASOLINE PRICE REBATES. of Big Oil Windfall Profits Tax Act do?

This section amends the Internal Revenue Code of 1986 to add a new section for gasoline price rebates. Eligible individuals can claim a credit against tax imposed by subtitle A for each taxable year beginning after December 31, 2025. The gasoline price rebate amount is determined by the Secretary based on the number of eligible individuals and revenues in the Protect Consumers from Gas Hikes Fund. The credit allowed is reduced by 5 percent of adjusted gross income exceeding certain thresholds. The Secretary shall prescribe regulations and carry out an outreach program to inform taxpayers of their eligibility for the credits.

What does PROTECT CONSUMERS FROM GAS PRICE HIKES FUND. of Big Oil Windfall Profits Tax Act do?

This section establishes the 'Protect Consumers from Gas Hikes Fund' within the Treasury of the United States. The fund will be funded by amounts appropriated or credited to it, and by taxes received under section 5896. Amounts equivalent to taxes received under section 5896 are appropriated to the fund. The Secretary is authorized to transfer funds from the 'Protect Consumers from Gas Price Hikes Fund' to the general fund of the Treasury. These transfers will equal the amounts of refunds provided under section 6436.

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Big Oil Windfall Profits Tax Act

Last updated: 3/17/2026 · Introduced: 3/17/2026

Author: Ro Khanna (D-CA)

TL;DR (AI)

The bill imposes an excise tax on crude oil, calculated as 50 percent of the excess of the average price of Brent crude oil over the average price during 2025, on taxpayers who extracted or imported over 300,000 barrels of taxable crude oil in 2025 or in a given quarter.
Eligible individuals can claim a credit against tax for a gasoline price rebate, with the amount determined by the Secretary based on the number of eligible individuals and revenues in the Protect Consumers from Gas Hikes Fund.
The Protect Consumers from Gas Hikes Fund is established to receive taxes received under the windfall profits tax and to provide refunds to eligible individuals, with excess amounts transferred to the general fund of the Treasury.

119th Congressin committeeS. 4111(In Committee)Official page

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Other Sections

Includes provisions on preamble, short title., and 3 more.

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