Big Oil Windfall Profits Tax Act

This bill creates a windfall profits excise tax on crude oil for large oil producers and importers, and uses the revenue to provide rebates to individual taxpayers. It establishes a trust fund to hold the tax revenues and disburse them as rebates.

Sec. 2, Windfall profits tax: A 50% excise tax is imposed each calendar quarter on each barrel of taxable crude oil extracted or imported by a covered taxpayer, on the amount by which the average quarterly Brent crude oil price exceeds the average price for 2025 (adjusted for inflation after 2026). A covered taxpayer is one that extracted or imported an average of over 300,000 barrels per day in 2025 or in the current quarter. The tax applies to crude oil, condensates, and natural gasoline, and the Treasury Secretary will set rules for withholding, deposits, returns, and records.

Sec. 3, Gasoline price rebates: Eligible individuals (excluding nonresident aliens, dependents, estates, and trusts) receive a refundable credit against income tax for each taxable year starting after 2025. The credit amount per quarter is determined by the Treasury Secretary based on the number of eligible individuals and the revenue in the Protect Consumers from Gas Hikes Fund from the prior quarter. Joint filers get 150% of the base amount. The credit is reduced by 5% of adjusted gross income above $150,000 (joint), $112,500 (head of household), or $75,000 (other). Taxpayers must include a valid Social Security number on their return. The Treasury Secretary must conduct outreach to inform taxpayers.

Sec. 4, Protect Consumers from Gas Hikes Fund: A trust fund is established in the Treasury, funded by amounts equal to the taxes received under the windfall profits tax. The Treasury Secretary will use the fund to pay refunds provided under the gasoline price rebate section.