Big Oil Windfall Profits Tax Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- 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 difference between the average price of Brent crude oil and the average price of Brent crude oil over 2025, applied to barrels of crude oil. The bill also includes a rebate credit for individual taxpayers, designed to offset the tax paid. Furthermore, it establishes a ‘Protect Consumers from Gas Price Hikes Fund’ to distribute the collected tax revenue to consumers through gasoline price rebates.
Key provisions
- Imposes a 50% excise tax on crude oil extracted or imported, calculated based on the difference between Brent crude oil prices.
- Establishes a ‘Protect Consumers from Gas Price Hikes Fund’ funded by the collected tax revenue.
- Provides a rebate credit to individual taxpayers for the amount of the tax paid.
- The tax rate adjusts annually based on inflation.
- Defines ‘covered taxpayer’ based on barrel volume of crude oil extracted or imported.
- Gasoline price rebates are available to eligible individuals.
- The rebate credit is subject to income limitations.
- Payments are made to possessions with ‘mirror code tax systems’ and to others based on estimated benefits.
Who is affected
- Oil and gas companies (covered taxpayers)
- Individual taxpayers
- Possessions of the United States
- The Internal Revenue Service (IRS)
Bill text
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Sponsors
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14 on record
Primary sponsor
Cosponsors
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