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 tax collected will be rebated back to individual taxpayers. The bill was introduced in the Senate on March 17, 2026.

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 extracts or imports over 300,000 barrels of taxable crude oil annually or quarterly. 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, 6436, establishing gasoline price rebates. Eligible individuals may receive a credit against their tax imposed by subtitle A, starting after December 31, 2025, based on a gasoline price rebate amount. 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 Protect Consumers from Gas Hikes Fund. Individuals filing joint returns receive a gasoline price rebate amount that is 150 percent of the amount determined for other taxpayers. The credit amount is reduced based on adjusted gross income, but not below zero, with different thresholds for joint returns, heads of household, and other cases. Eligibility is limited to individuals who are not nonresident aliens, dependents of another taxpayer, or estates or trusts. A valid social security number is generally required to receive the gasoline price rebate amount, with exceptions for members of the armed forces and coordination with advance payments. The Secretary is required to prescribe regulations and carry out an outreach program to inform taxpayers about the credits. The Secretary of the Treasury will make payments to U.S. possessions with mirror code tax systems to offset any revenue loss resulting from the amendments. Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended to include 6436.

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, as well as 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: Sheldon Whitehouse (D-RI)

TL;DR (AI)

This bill imposes a 50% excise tax on covered taxpayers who extract or import over 300,000 barrels of taxable crude oil annually, based on the difference between the current price of Brent crude oil and a 2025 benchmark, adjusted for inflation.
Eligible individual taxpayers will receive gasoline price rebates as a credit against their taxes, with higher amounts for those filing joint returns and income-based reductions.
A 'Protect Consumers from Gas Hikes Fund' is created and funded by the crude oil excise tax revenue, with funds transferred to the general Treasury fund to offset the gasoline price rebates.

119th Congressin committeeHR. 7960(In Committee)Official page

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

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