Big Oil Windfall Profits Tax Act

This bill creates a windfall profits excise tax on crude oil for large oil companies and rebates the tax revenue back to individual taxpayers as gasoline price rebates. It establishes a trust fund to hold the tax revenue and disburse the rebates.

Sec. 2, Windfall profits tax: A new excise tax is imposed on each barrel of taxable crude oil extracted in or imported into the United States by a covered taxpayer. The tax rate is 50% of the excess of the average quarterly Brent crude oil price over the average price for 2025, adjusted for inflation after 2026. A covered taxpayer is one that extracted or imported over 300,000 barrels per day on average in 2025 or in the current calendar quarter. The tax applies to crude oil removed or entered after December 31, 2025, with a delayed due date for quarters before July 1, 2026.

Sec. 3, Gasoline price rebates: Eligible individuals are allowed a refundable tax credit for each taxable year, equal to the sum of quarterly gasoline price rebate amounts. The rebate amount per quarter is determined by the Secretary based on the number of eligible individuals and the tax revenues from the prior quarter. The rebate is reduced for higher incomes, phased out above $75,000 for single filers, $112,500 for head of household, and $150,000 for joint filers. Joint filers get 150% of the base amount. The credit requires a valid Social Security number.

Sec. 4, Protect Consumers from Gas Price Hikes Fund: A trust fund is established in the Treasury to receive the windfall profits tax revenues. The fund's money is used to pay for the gasoline price rebates provided under section 6436.