To amend the Internal Revenue Code of 1986 to impose a windfall profit tax on oil and natural gas (and products thereof) and to allow an income tax credit for purchases of fuel-efficient passenger vehicles, and to allow grants for mass transit.

Summary: Gas Price Spike Act of 2012 - Amends the Internal Revenue Code to: (1) impose an excise tax on the windfall profit from the sale of any crude oil, natural gas, or fuel which is the product of crude oil or natural gas; and (2) allow a tax credit for the purchase of certain fuel-efficient automobiles assembled in the United States by individuals employed under a collective bargaining agreement. Defines "windfall profit" as so much of the profit from sales of oil and natural gas as exceeds a reasonable profit. Establishes a Reasonable Profits Board to make reasonable profit determinations for purposes of applying the windfall profit tax.

Authorizes the Secretary of Transportation to make grants to mass transit systems, including bus and commuter rail systems, for reducing passenger fares.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gas Price Spike Act of 2012''.

SEC. 2. WINDFALL PROFITS TAX.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

 ``CHAPTER 56--WINDFALL PROFIT ON CRUDE OIL, NATURAL GAS, AND PRODUCTS 
                                THEREOF

``Sec. 5896. Imposition of tax.

``SEC. 5896. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed an excise tax on the sale in the United 
States of any crude oil, natural gas, or other taxable product a tax 
equal to the applicable percentage of the windfall profit on such sale.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Taxable product.--The term `taxable product' means 
        any fuel which is a product of crude oil or natural gas.
            ``(2) Windfall profit.--The term `windfall profit' means, 
        with respect to any sale, so much of the profit on such sale as 
        exceeds a reasonable profit.
            ``(3) Applicable percentage.--The term `applicable 
        percentage' means--
                    ``(A) 50 percent to the extent that the profit on 
                the sale exceeds 100 percent of the reasonable profit 
                on the sale but does not exceed 102 percent of the 
                reasonable profit on the sale,
                    ``(B) 75 percent to the extent that the profit on 
                the sale exceeds 102 percent of the reasonable profit 
                on the sale but does not exceed 105 percent of the 
                reasonable profit on the sale, and
                    ``(C) 100 percent to the extent that the profit on 
                the sale exceeds 105 percent of the reasonable profit 
                on the sale.
            ``(4) Reasonable profit.--The term `reasonable profit' 
        means the amount determined by the Reasonable Profits Board to 
        be a reasonable profit on the sale.
    ``(c) Liability for Payment of Tax.--The taxes imposed by 
subsection (a) shall be paid by the seller.''.
    (b) Clerical Amendment.--The table of chapters for subtitle E of 
such Code is amended by adding at the end the following new item:

   ``Chapter 56. Windfall Profit on Crude Oil and Refined Petroleum 
                              Products.''.

    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

SEC. 3. CREDIT FOR PURCHASING FUEL EFFICIENT AMERICAN-MADE PASSENGER 
              VEHICLES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. PURCHASE OF FUEL-EFFICIENT AMERICAN-MADE PASSENGER 
              VEHICLES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a credit against the tax imposed by this chapter for the 
taxable year an amount equal to the cost of any qualified passenger 
vehicle purchased by the taxpayer during the taxable year.
    ``(b) Maximum Credit.--
            ``(1) In general.--The credit allowed by this section for 
        the taxable year shall be--
                    ``(A) $3,000 in the case of a qualified passenger 
                vehicle not described in subparagraph (B) or (C) if the 
                vehicle's fuel economy is within the 10 percent most 
                fuel efficient range,
                    ``(B) $4,500 in the case of a qualified passenger 
                vehicle not described in subparagraph (C) if the 
                vehicle's fuel economy is within the 5 percent most 
                fuel efficient range, and
                    ``(C) $6,000 in the case of a qualified passenger 
                vehicle the fuel economy of which is at least 65 miles 
                per gallon.
            ``(2) Determination of ranges.--
                    ``(A) In general.--A vehicle sold during a calendar 
                year is within the 10 percent most fuel efficient range 
                if the fuel economy for such vehicle is equal to or 
                greater than the lowest fuel economy of a vehicle 
                included in the group consisting of the 10 percent of 
                the vehicles sold during the preceding calendar year 
                with the highest fuel economy. A similar rule shall be 
                applied to determine the 5 percent most fuel efficient 
                range.
                    ``(B) Separate determination.--The 5 and 10 percent 
                most fuel efficient ranges shall be determined 
                separately for--
                            ``(i) trucks and sport utility vehicles as 
                        a group, and
                            ``(ii) other qualified vehicles as a group.
                    ``(C) Ranges to be published before beginning of 
                year.--Before the beginning of each calendar year, the 
                Secretary shall publish in the Federal Register the 5 
                and 10 percent most fuel efficient ranges which apply 
                for such calendar year. In the case of ranges for 
                calendar year 2011, such ranges shall be published as 
                soon as possible.
    ``(c) Qualified Passenger Vehicle.--For purposes of this section--
            ``(1) In general.--The term `qualified automobile' means 
        any automobile (as defined in section 4064(b))--
                    ``(A) which is purchased after the date of the 
                enactment of this section,
                    ``(B) which is assembled in the United States by 
                individuals employed under a collective bargaining 
                agreement,
                    ``(C) the original use of which begins with the 
                taxpayer,
                    ``(D) substantially all of the use of which is for 
                personal, nonbusiness purposes, and
                    ``(E) the fuel economy of such automobile is within 
                the 10 percent most fuel efficient range.
            ``(2) Fuel economy.--Fuel economy shall be determined in 
        accordance with section 4064.
    ``(d) Special Rules.--
            ``(1) Basis reduction.--The basis of any property for which 
        a credit is allowable under subsection (a) shall be reduced by 
        the amount of such credit.
            ``(2) Property used outside united states not qualified.--
        No credit shall be allowed under subsection (a) with respect to 
        any property referred to in section 50(b).''.
    (b) Clerical Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Purchase of fuel-efficient American-made passenger 
                            vehicles.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after the date of the enactment of this 
Act.

SEC. 4. MASS TRANSIT FARE REDUCTIONS DURING GAS PRICE SPIKES.

    (a) In General.--The Secretary of Transportation may make grants to 
the operator of a mass transit system to assist the operator in 
reducing fares paid by passengers using the system.
    (b) Use of Grants.--Grants received under the program shall be used 
solely for implementing a fare reduction described in subsection (a) 
that is applied equally to all passengers using the mass transit 
system.
    (c) Mass Transit System Defined.--In this section, the term ``mass 
transit system'' includes bus and commuter rail systems.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section in a fiscal year amounts 
equivalent to the excess (if any) of--
            (1) the revenues received during the preceding fiscal year 
        pursuant to chapter 56 of the Internal Revenue Code of 1986 
        (relating to windfall profit on crude oil and refined petroleum 
        products), over
            (2) the revenue cost for such fiscal year of section 25E of 
        such Code (relating to purchase of fuel-efficient American-made 
        passenger vehicles).
Amounts authorized under the preceding sentence shall remain available 
until expended.

SEC. 5. REASONABLE PROFITS BOARD.

    (a) Establishment.--There is established an independent board to be 
known as the ``Reasonable Profits Board'' (hereafter in this section 
referred to as the ``Board'').
    (b) Duties.--The Board shall make reasonable profit determinations 
for purposes of applying section 5896 of the Internal Revenue Code of 
1986 (relating to windfall profit on crude oil, natural gas, and 
products thereof).
    (c) Advisory Committee.--The Board shall be considered an advisory 
committee within the meaning of the Federal Advisory Committee Act (5 
U.S.C. App.).
    (d) Appointment.--
            (1) Members.--The Board shall be composed of 3 members 
        appointed by the President of the United States.
            (2) Term.--Members of the Board shall be appointed for a 
        term of 3 years.
            (3) Background.--The members shall have no financial 
        interests in any of the businesses for which reasonable profits 
        are determined by the Board.
    (e) Pay and Travel Expenses.--
            (1) Pay.--Notwithstanding section 7 of the Federal Advisory 
        Committee Act (5 U.S.C. App.), members of the Board shall be 
        paid at a rate equal to the daily equivalent of the minimum 
        annual rate of basic pay for level IV of the Executive Schedule 
        under section 5315 of title 5, United States Code, for each day 
        (including travel time) during which the member is engaged in 
        the actual performance of duties vested in the Board.
            (2) Travel expenses.--Members shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with section 5702 and 5703 of title 5, United States 
        Code.
    (f) Director of Staff.--
            (1) Qualifications.--The Board shall appoint a Director who 
        has no financial interests in any of the businesses for which 
        reasonable profits are determined by the Board.
            (2) Pay.--Notwithstanding section 7 of the Federal Advisory 
        Committee Act (5 U.S.C. App.), the Director shall be paid at 
        the rate of basic pay payable for level IV of the Executive 
        Schedule under section 5315 of title 5, United States Code.
    (g) Staff.--
            (1) Additional personnel.--The Director, with the approval 
        of the Board, may appoint and fix the pay of additional 
        personnel.
            (2) Appointments.--The Director may make such appointments 
        without regard to the provisions of title 5, United States 
        Code, governing appointments in the competitive service, and 
        any personnel so appointed may be paid without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        that title relating to classification and General Schedule pay 
        rates.
            (3) Detailees.--Upon the request of the Director, the head 
        of any Federal department or agency may detail any of the 
        personnel of that department or agency to the Board to assist 
        the Board in accordance with an agreement entered into with the 
        Board.
            (4) Assistance.--The Comptroller General of the United 
        States may provide assistance, including the detailing of 
        employees, to the Board in accordance with an agreement entered 
        into with the Board.
    (h) Other Authority.--
            (1) Experts and consultants.--The Board may procure by 
        contract, to the extent funds are available, the temporary or 
        intermittent services of experts or consultants pursuant to 
        section 3109 of title 5, United States Code.
            (2) Leasing.--The Board may lease space and acquire 
        personal property to the extent that funds are available.
    (i) Funding.--There are authorized to be appropriated such funds as 
are necessary to carry out this section.