To amend the Internal Revenue Code of 1986 to impose a windfall profits excise tax on crude oil and to rebate the tax collected back to individual taxpayers, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
This bill creates a new excise tax on large oil companies when crude oil prices rise above their historical average from 2015 to 2019. The tax rate is 50% of the price difference above that baseline, applied per barrel. All revenue collected goes into a new trust fund and is returned to individual American taxpayers as quarterly gasoline price rebate credits.
Who Benefits and How
Individual taxpayers earning under the income thresholds would receive the largest benefit through quarterly rebate payments funded by the windfall profits tax. Joint filers under ,000 and single filers under ,000 receive the full rebate. Joint return filers get 150% of the standard rebate amount. The bill is designed so that when oil prices spike and consumers pay more at the pump, they receive compensating payments.
Who Bears the Burden and How
Large oil companies that extract or import more than 300,000 barrels per day bear the tax burden. The tax applies to both domestically extracted and imported crude oil. These companies would see reduced profits during periods of high oil prices. The tax could also be passed on to consumers through higher fuel prices, partially offsetting the rebate benefit.
Key Provisions
- 50% excise tax on per-barrel crude oil prices above the 2015-2019 average, adjusted for inflation
- Applies only to large producers or importers handling over 300,000 barrels per day
- Creates the Protect Consumers from Gas Price Hikes Fund to hold tax revenue
- Establishes quarterly gasoline price rebate credits to individual taxpayers
- Income phase-out starting at ,000 (single), ,500 (head of household), ,000 (joint filers)
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Imposes a 50% windfall profits excise tax on large oil companies when crude oil prices exceed their 2015-2019 average, and rebates the collected revenue directly to individual taxpayers as a quarterly gasoline price credit.
Key Policy Areas
Taxation, Energy, Consumer Protection
Primary Purpose
Imposes a 50% windfall profits excise tax on large oil companies when crude oil prices exceed their 2015-2019 average, and rebates the collected revenue directly to individual taxpayers as a quarterly gasoline price credit.
Policy Domains
Whole Bill
Identified Gains
- Individual taxpayers below income thresholds
- Low- and middle-income households
- US territory residents
Identified Costs
- Large oil companies extracting or importing over 300,000 barrels per day
- Oil importers
Sponsors
Legislative Progress
IntroducedMr. Khanna (for himself, Mr. Nadler, Ms. Barragán, Mr. Pocan, …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Department of the Treasury, US territories and possessions
Positive-direction: US territories and possessions
Negative-direction: Department of the Treasury
Large oil companies extracting or importing >300,000 barrels/day, Oil refineries and importers
Eligible individual taxpayers below income thresholds, Low and middle-income taxpayers
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "Internal Revenue Service"
- → Administers the windfall profits tax and distributes rebates
- "Department of the Treasury"
- → Manages the Protect Consumers from Gas Price Hikes Fund
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology