What does Preamble of Iran War Oil Crisis 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 tax collected would be rebated to individual taxpayers. Rebates would continue until specific conditions are met: cessation of hostilities with Iran, full reopening of the Strait of Hormuz, and a drop in oil prices below $75 per barrel.

What does SHORT TITLE. of Iran War Oil Crisis Windfall Profits Tax Act do?

This bill is formally titled the Iran War Oil Crisis Windfall Profits Tax Act

What does WINDFALL PROFITS TAX. of Iran War Oil Crisis 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 for each applicable calendar quarter. The tax rate is determined based on the price of West Texas Intermediate (WTI) oil exceeding $75 per barrel. An 'applicable calendar quarter' ends when hostilities with Iran cease, the Strait of Hormuz is fully reopened, and the price of WTI oil falls below $75. The tax applies to taxable crude oil extracted within the United States or entered into the United States for consumption, use, or warehousing. A 'covered taxpayer' is one whose average daily number of barrels of taxable crude oil extracted and imported exceeded 100,000 barrels for calendar year 2025, or exceeds 100,000 for the calendar quarter. The tax applies to crude oil, crude oil condensates, natural gasoline, gasoline, and diesel. The Secretary is required to prescribe regulations for withholding, deposit, records, returns, and the filing of the windfall profit tax. The amendments apply to crude oil removed or entered after the date of enactment, in calendar quarters ending after such date.

What does GASOLINE PRICE REBATES. of Iran War Oil Crisis Windfall Profits Tax Act do?

This section amends subchapter B of chapter 65 of the Internal Revenue Code of 1986 by adding a new section, 6436, establishing gasoline price rebates. Eligible individuals may receive a credit against their tax imposed by subtitle A for each taxable year beginning after December 31, 2025. The gasoline price rebate amount is determined by the Secretary within 30 days after the end of each calendar quarter, considering the number of eligible individuals and revenues from the Iran War Gasoline Price Relief Fund. An 'eligible individual' excludes nonresident aliens, dependents of other taxpayers, and estates or trusts. The credit is treated as refundable. The Secretary must prescribe regulations within 90 days of the section's enactment and conduct outreach to inform taxpayers of their eligibility. The Secretary of the Treasury will make payments to U.S. possessions with and without 'mirror code tax systems' to offset revenue losses or provide benefits equivalent to those provided to residents. Administrative expenses incurred by possessions due to these changes will also be reimbursed. Credits against U.S. income taxes under section 6434 will be disallowed to individuals receiving credits or payments under the possession provisions. The amendments apply to taxable years beginning after December 31, 2025.

What does IRAN WAR GASONLINE PRICE RELIEF FUND. of Iran War Oil Crisis Windfall Profits Tax Act do?

This section establishes the Iran War Gasonline Price Relief Fund. The fund consists of amounts appropriated or credited to it. Transfers to the fund come from taxes received under section 5896. The Secretary pays from the fund to the general fund of the Treasury for refunds under section 6436. The amendments apply to taxable years beginning after December 31, 2025.

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Iran War Oil Crisis Windfall Profits Tax Act

Last updated: 5/13/2026 · Introduced: 5/13/2026

Author: Brad Sherman (D-CA)

TL;DR (AI)

This bill establishes a windfall profits excise tax on large crude oil producers (averaging over 100,000 barrels daily) when the price of WTI oil exceeds $75 per barrel, applying to oil extracted or imported into the United States.
The bill creates a refundable gasoline price rebate for eligible U.S. taxpayers, calculated quarterly and funded by revenues from the windfall profits tax.
A new Iran War Gasoline Price Relief Fund is established to manage and distribute rebate payments, with transfers from the windfall profits tax revenue.

119th Congressin committeeOfficial page

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

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