Big Oil Windfall Profits Tax Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Overview
The Big Oil Windfall Profits Tax Act proposes a new excise tax on crude oil extracted and imported into the United States. This tax would be calculated as 50% of the excess of the average Brent crude oil price over the average Brent crude oil price from 2025, and adjusted for inflation. The bill also includes a rebate of these taxes back to individual taxpayers through a new credit, the ‘Gasoline Price Rebate,’ designed to offset potential increases in gasoline prices. Finally, it establishes a ‘Protect Consumers from Gas Price Hikes Fund’ to distribute the collected tax revenue to refund the rebate credit.
Key provisions
- Imposes a 50% excise tax on crude oil extracted or imported into the US, based on the difference between current and 2025 Brent crude oil prices.
- Includes an inflation adjustment to the tax rate.
- Creates a ‘Gasoline Price Rebate’ credit for eligible taxpayers to offset potential gasoline price increases.
- Establishes the ‘Protect Consumers from Gas Price Hikes Fund’ to manage and distribute tax revenue.
- Defines ‘covered taxpayer’ based on barrel volume of crude oil extracted or imported.
- Specifies that the tax applies to barrels of taxable crude oil.
- Provides for a calculation of tax based on fractions of a barrel.
- Includes provisions for payments to US possessions with mirror code tax systems.
Who is affected
- Oil and Gas Industry
- Crude Oil Producers
- Taxpayers
Bill text
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Sponsors
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27 on record
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