What does Preamble of Taxing Buybacks from Big Oil Windfalls Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment focuses on increasing the excise tax. The increased excise tax applies to the repurchase of corporate stock. This tax applies specifically to large oil and gas companies.

What does SHORT TITLE. of Taxing Buybacks from Big Oil Windfalls Act do?

This bill is formally titled the 'Taxing Buybacks from Big Oil Windfalls Act'.

What does INCREASE IN TAX ON REPURCHASE OF CORPORATE STOCK BY LARGE OIL of Taxing Buybacks from Big Oil Windfalls Act do?

This section amends Section 4501 of the Internal Revenue Code of 1986 to increase the tax on repurchases of corporate stock by large oil and gas companies. The increased tax applies to 'covered corporations' which are also 'applicable corporations'. An 'applicable corporation' is defined as a corporation with average annual gross receipts of $1,000,000,000 or more for the three preceding taxable years and primarily engaged in oil or natural gas trades or businesses. The increased tax rate changes the 1% rate in subsection (a) to 25% for applicable corporations. The subsection applies to stock repurchases after the date of enactment and before a specified 'gasoline price requirement' is met. The 'gasoline price requirement' is met if the weekly retail price of regular gasoline falls below $2.937 per gallon for five consecutive weeks. A 'special rule' addresses situations where both periods with and without the increased tax apply within the same taxable year, allocating the reduction proportionally based on the number of days in each period.

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Taxing Buybacks from Big Oil Windfalls Act

Last updated: 5/20/2026 · Introduced: 5/20/2026

Author: Ron Wyden (D-OR)

TL;DR (AI)

This bill increases the excise tax on stock repurchases for large oil and gas companies from 1% to 25%.
The increased tax applies to corporations with average annual gross receipts exceeding $1 billion primarily engaged in oil or natural gas businesses.
The 25% excise tax on stock repurchases will remain in effect until the weekly retail price of regular gasoline falls below $2.937 per gallon for five consecutive weeks.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 1 more.

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