II 

118TH CONGRESS 

1ST SESSION S. 408 

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. 

IN THE SENATE OF THE UNITED STATES 

FEBRUARY 14, 2023 

Mr. WHITEHOUSE (for himself, Mr. PADILLA, Mr. MERKLEY, Mr. BROWN, 

Mr. CASEY, Ms. WARREN, Mr. MARKEY, Mr. BLUMENTHAL, Mr. BENNET, Mr. MURPHY, Mr. KAINE, Mr. WARNOCK, Ms. BALDWIN, Mr. 

BOOKER, Ms. STABENOW, Mr. SANDERS, Mr. REED, and Mrs. FEINSTEIN) introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Big Oil Windfall Prof5 its Tax Act’’. 


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1 SEC. 2. WINDFALL PROFITS TAX. 

2 (a) IN GENERAL.—Subtitle E of the Internal Rev3 enue Code of 1986 is amended by adding at the end there4 of the following new chapter: 

5 ‘‘CHAPTER 56—WINDFALL PROFITS ON 

6 CRUDE OIL 

‘‘Sec. 5896. Imposition of tax. 

‘‘Sec. 5897. Definitions and special rules. 

7 ‘‘SEC. 5896. IMPOSITION OF TAX. 

8 ‘‘(a) IN GENERAL.—In addition to any other tax im9 posed under this title, in each calendar quarter there is 

10 hereby imposed on any covered taxpayer an excise tax at 

11 the rate determined under subsection (b) on— 

12 ‘‘(1) each barrel of taxable crude oil extracted 

13 by the taxpayer within the United States and re14 moved from the property of such taxpayer during 

15 the calendar quarter, and 

16 ‘‘(2) each barrel of taxable crude oil entered 

17 into the United States during the calendar quarter 

18 by the taxpayer for consumption, use, or 

19 warehousing. 

20 ‘‘(b) RATE OF TAX.— 

21 ‘‘(1) IN GENERAL.—The rate of tax imposed by 

22 this section on any barrel of taxable crude oil for 

23 any calendar quarter is the product of— 

24 ‘‘(A) 50 percent, and 


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1 ‘‘(B) the excess (if any) of— 

2 ‘‘(i) the average price of a barrel of 

3 Brent crude oil over the covered calendar 

4 quarter, over 

5 ‘‘(ii) the average price of a barrel of 

6 Brent crude oil over the period beginning 

7 on January 1, 2015, and ending on De8 cember 31, 2019. 

9 ‘‘(2) INFLATION ADJUSTMENT.— 

10 ‘‘(A) IN GENERAL.—In the case of a cal11 endar quarter beginning in any taxable year be12 ginning after 2022, the amount determined 

13 under paragraph (1)(B)(ii) shall be increased 

14 by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which the taxable year be19 gins, determined by substituting ‘2021’ for 

20 ‘2016’ in subparagraph (A)(ii) thereof. 

21 ‘‘(B) ROUNDING.—If any dollar amount, 

22 after being increased under subparagraph (A), 

23 is not a multiple of $0.50, such dollar amount 

24 shall be rounded to the next lowest multiple of 

25 $0.01. 


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1 ‘‘(c) FRACTIONAL PART OF BARREL.—In the case of 

2 a fraction of a barrel, the tax imposed by subsection (a) 

3 shall be the same fraction of the amount of such tax im4 posed on the whole barrel. 

5 ‘‘SEC. 5897. DEFINITIONS AND SPECIAL RULES. 

6 ‘‘(a) DEFINITIONS.—For purposes of this chapter— 

7 ‘‘(1) COVERED TAXPAYER.— 

8 ‘‘(A) IN GENERAL.—The term ‘covered 

9 taxpayer’ means, with respect to any calendar 

10 quarter, any taxpayer if— 

11 ‘‘(i) the average daily number of bar12 rels of taxable crude oil extracted and im13 ported by the taxpayer for calendar year 

14 2019 exceeded 300,000 barrels, or 

15 ‘‘(ii) the average daily number of bar16 rels of taxable crude oil extracted and im17 ported by the taxpayer for the calendar 

18 quarter exceeds 300,000. 

19 ‘‘(B) AGGREGATION RULES.—All persons 

20 treated as a single employer under subsection 

21 (a) or (b) of section 52 or subsection (m) or (o) 

22 of section 414 shall be treated as one person for 

23 purposes of paragraph (1). 


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1 ‘‘(2) TAXABLE CRUDE OIL.—The term ‘taxable 

2 crude oil’ includes crude oil, crude oil condensates, 

3 and natural gasoline. 

4 ‘‘(3) BARREL.—The term ‘barrel’ means 42 

5 United States gallons. 

6 ‘‘(4) UNITED STATES.—The term ‘United 

7 States’ has the same meaning given such term under 

8 section 4612. 

9 ‘‘(b) WITHHOLDING AND DEPOSIT OF TAX.—The 

10 Secretary shall provide such rules as are necessary for the 

11 withholding and deposit of the tax imposed under section 

12 5896 on any taxable crude oil. 

13 ‘‘(c) RECORDS AND INFORMATION.—Each taxpayer 

14 liable for tax under section 5896 shall keep such records, 

15 make such returns, and furnish such information (to the 

16 Secretary and to other persons having an interest in the 

17 taxable crude oil) with respect to such oil as the Secretary 

18 may by regulations prescribe. 

19 ‘‘(d) RETURN OF WINDFALL PROFIT TAX.—The Sec20 retary shall provide for the filing and the time of such 

21 filing of the return of the tax imposed under section 5896. 

22 ‘‘(e) REGULATIONS.—The Secretary shall prescribe 

23 such regulations as may be necessary or appropriate to 

24 carry out the purposes of this chapter.’’. 


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1 (b) CLERICAL AMENDMENT.—The table of chapters 

2 for subtitle E of the Internal Revenue Code of 1986 is 

3 amended by adding at the end the following new item: 

‘‘CHAPTER 56. WINDFALL PROFIT ON CRUDE OIL’’. 

4 (c) EFFECTIVE DATE.— 

5 (1) IN GENERAL.—The amendments made by 

6 this section shall apply to crude oil removed or en7 tered after December 31, 2021, in calendar quarters 

8 ending after such date. 

9 (2) SPECIAL RULE FOR QUARTERS DURING

10 2022.—In the case of any calendar quarter ending in 

11 calendar year 2022, the tax imposed under section 

12 5896 shall not be due before March 31, 2023. 

13 SEC. 3. GASOLINE PRICE REBATES. 

14 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

15 Internal Revenue Code of 1986 is amended by adding at 

16 the end the following new section: 

17 ‘‘SEC. 6434. GASOLINE PRICE REBATES. 

18 ‘‘(a) IN GENERAL.—In the case of an eligible indi19 vidual, there shall be allowed as a credit against the tax 

20 imposed by subtitle A for each taxable year beginning 

21 after December 31, 2021, an amount equal to the sum 

22 of the gasoline price rebate amount for calendar quarters 

23 beginning in such taxable year. 

24 ‘‘(b) GASOLINE PRICE REBATE AMOUNT.—For pur25 poses of this section— 


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1 ‘‘(1) IN GENERAL.—The term ‘gasoline price 

2 rebate amount’ means, with respect to any taxpayer 

3 for any calendar quarter beginning in a taxable year, 

4 an amount determined by the Secretary not later 

5 than 30 days after the end of such calendar quarter 

6 taking into account the number of eligible individ7 uals and the amount of revenues in the Protect Con8 sumers from Gas Hikes Fund resulting from the tax 

9 imposed by section 5896 for the preceding calendar 

10 quarter. 

11 ‘‘(2) SPECIAL RULE FOR JOINT RETURNS.—In 

12 the case of an eligible individual filing a joint return, 

13 the gasoline price rebate amount shall be 150 per14 cent of the amount determined under paragraph (1) 

15 with respect to other taxpayers. 

16 ‘‘(3) LIMITATION BASED ON ADJUSTED GROSS

17 INCOME.—The amount of the credit allowed by sub18 section (a) (determined without regard to this sub19 section and subsection (e)) shall be reduced (but not 

20 below zero) by 5 percent of so much of the eligible 

21 individual’s adjusted gross income as exceeds— 

22 ‘‘(A) $150,000 in the case of a joint re23 turn, 

24 ‘‘(B) $112,500 in the case of a head of 

25 household, and 


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1 ‘‘(C) $75,000 in any other case. 

2 ‘‘(c) ELIGIBLE INDIVIDUAL.—For purposes of this 

3 section, the term ‘eligible individual’ means any individual 

4 other than— 

5 ‘‘(1) any nonresident alien individual, 

6 ‘‘(2) any individual who is a dependent of an7 other taxpayer for a taxable year beginning in the 

8 calendar year in which the individual’s taxable year 

9 begins, and 

10 ‘‘(3) an estate or trust. 

11 ‘‘(d) DEFINITIONS AND SPECIAL RULES.— 

12 ‘‘(1) DEPENDENT DEFINED.—For purposes of 

13 this section, the term ‘dependent’ has the meaning 

14 given such term by section 152. 

15 ‘‘(2) IDENTIFICATION NUMBER REQUIRE16 MENT.— 

17 ‘‘(A) IN GENERAL.—In the case of a re18 turn other than a joint return, the gasoline 

19 price rebate amount in subsection (b)(1) shall 

20 be treated as being zero unless the taxpayer in21 cludes the valid identification number of the 

22 taxpayer on the return of tax for the taxable 

23 year. 


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1 ‘‘(B) JOINT RETURNS.—In the case of a 

2 joint return, the gasoline price rebate amount 

3 in subsection (b)(1) shall be treated as being— 

4 ‘‘(i) 50 percent of the amount other5 wise determined without regard to this 

6 paragraph if the valid identification num7 ber of only 1 spouse is included on the re8 turn of tax for the taxable year, and 

9 ‘‘(ii) zero if the valid identification 

10 number of neither spouse is so included. 

11 ‘‘(C) VALID IDENTIFICATION NUMBER.— 

12 For purposes of this paragraph, the term ‘valid 

13 identification number’ means a social security 

14 number issued to an individual by the Social 

15 Security Administration on or before the due 

16 date for filing the return for the taxable year. 

17 ‘‘(D) SPECIAL RULE FOR MEMBERS OF

18 THE ARMED FORCES.—Subparagraph (B) shall 

19 not apply in the case where at least 1 spouse 

20 was a member of the Armed Forces of the 

21 United States at any time during the taxable 

22 year and the valid identification number of at 

23 least 1 spouse is included on the return of tax 

24 for the taxable year. 


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1 ‘‘(E) COORDINATION WITH CERTAIN AD2 VANCE PAYMENTS.—In the case of any payment 

3 determined pursuant to subsection (f)(6), a 

4 valid identification number shall be treated for 

5 purposes of this paragraph as included on the 

6 taxpayer’s return of tax if such valid identifica7 tion number is available to the Secretary as de8 scribed in such subsection. 

9 ‘‘(F) MATHEMATICAL OR CLERICAL ERROR

10 AUTHORITY.—Any omission of a correct valid 

11 identification number required under this para12 graph shall be treated as a mathematical or 

13 clerical error for purposes of applying section 

14 6213(g)(2) to such omission. 

15 ‘‘(3) CREDIT TREATED AS REFUNDABLE.—The 

16 credit allowed by subsection (a) shall be treated as 

17 allowed by subpart C of part IV of subchapter A of 

18 chapter 1. 

19 ‘‘(e) REGULATIONS.—The Secretary shall prescribe 

20 such regulations or other guidance as may be necessary 

21 or appropriate to carry out the purposes of this section. 

22 ‘‘(f) OUTREACH.—The Secretary shall carry out a ro23 bust and comprehensive outreach program to ensure that 

24 all taxpayers learn of their eligibility for the credits alVerDate Sep 11 2014 21:34 Mar 02, 2023 Jkt 039200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S408.IS S408

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1 lowed under this section and are provided assistance in 

2 claiming such credits.’’. 

3 (b) TREATMENT OF CERTAIN POSSESSIONS.— 

4 (1) PAYMENTS TO POSSESSIONS WITH MIRROR

5 CODE TAX SYSTEMS.—The Secretary of the Treas6 ury shall pay to each possession of the United States 

7 which has a mirror code tax system amounts equal 

8 to the loss (if any) to that possession by reason of 

9 the amendments made by this section. Such 

10 amounts shall be determined by the Secretary of the 

11 Treasury based on information provided by the gov12 ernment of the respective possession. 

13 (2) PAYMENTS TO OTHER POSSESSIONS.—The 

14 Secretary of the Treasury shall pay to each posses15 sion of the United States which does not have a mir16 ror code tax system amounts estimated by the Sec17 retary of the Treasury as being equal to the aggre18 gate benefits (if any) that would have been provided 

19 to residents of such possession by reason of the 

20 amendments made by this section if a mirror code 

21 tax system had been in effect in such possession. 

22 The preceding sentence shall not apply unless the re23 spective possession has a plan, which has been ap24 proved by the Secretary of the Treasury, under 


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1 which such possession will promptly distribute such 

2 payments to its residents. 

3 (3) INCLUSION OF ADMINISTRATIVE EX4 PENSES.—The Secretary of the Treasury shall pay 

5 to each possession of the United States to which the 

6 Secretary makes a payment under paragraph (1) or 

7 (2) an amount equal to the increase (if any) of the 

8 administrative expenses of such possession— 

9 (A) in the case of a possession described in 

10 paragraph (1), by reason of the amendments 

11 made by this section, and 

12 (B) in the case of a possession described in 

13 paragraph (2), by reason of carrying out the 

14 plan described in such paragraph, or 

15 the amount described in subparagraph (A) shall be 

16 determined by the Secretary of the Treasury based 

17 on information provided by the government of the 

18 respective possession. 

19 (4) COORDINATION WITH CREDIT ALLOWED

20 AGAINST UNITED STATES INCOME TAXES.—No cred21 it shall be allowed against United States income 

22 taxes under section 6434 of the Internal Revenue 

23 Code of 1986 (as added by this section) to any per24 son— 


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1 (A) to whom a credit is allowed against 

2 taxes imposed by the possession by reason of 

3 the amendments made by this section, or 

4 (B) who is eligible for a payment under a 

5 plan described in paragraph (2). 

6 (5) MIRROR CODE TAX SYSTEM.—For purposes 

7 of this subsection, the term ‘‘mirror code tax sys8 tem’’ means, with respect to any possession of the 

9 United States, the income tax system of such posses10 sion if the income tax liability of the residents of 

11 such possession under such system is determined by 

12 reference to the income tax laws of the United 

13 States as if such possession were the United States. 

14 (6) TREATMENT OF PAYMENTS.—For purposes 

15 of section 1324 of title 31, United States Code, the 

16 payments under this subsection shall be treated in 

17 the same manner as a refund due from a credit pro18 vision referred to in subsection (b)(2) of such sec19 tion. 

20 (c) ADMINISTRATIVE PROVISIONS.— 

21 (1) DEFINITION OF DEFICIENCY.—Section 

22 6211(b)(4)(A) of the Internal Revenue Code of 1986 

23 is amended by striking ‘‘and 6433’’ and inserting 

24 ‘‘6433, and 6434,’’. 

25 (2) CONFORMING AMENDMENTS.— 


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1 (A) Paragraph (2) of section 1324(b) of 

2 title 31, United States Code, is amended by in3 serting ‘‘6434,’’ after ‘‘6433,’’. 

4 (B) The table of sections for subchapter B 

5 of chapter 65 of the Internal Revenue Code of 

6 1986 is amended by adding at the end the fol7 lowing new item: 

‘‘Sec. 6434. Gasoline price rebates.’’. 

8 (d) SPECIAL RULES FOR 2022.—In the case of tax9 able years ending during calendar year 2022, the Sec10 retary shall provide any refunds due to the credit allowed 

11 under section 6434 of the Internal Revenue Code of 1986 

12 (as added by this section) not later than June 30, 2023. 

13 SEC. 4. PROTECT CONSUMERS FROM GAS PRICE HIKES 

14 FUND. 

15 (a) IN GENERAL.—Subchapter A of chapter 98 of the 

16 Internal Revenue Code of 1986 is amended by adding at 

17 the end the following new section: 

18 ‘‘SEC. 9512. PROTECT CONSUMERS FROM GAS PRICE HIKES 

19 FUND. 

20 ‘‘(a) ESTABLISHMENT AND FUNDING.—There is 

21 hereby established in the Treasury of the United States 

22 a trust fund to be referred to as the ‘Protect Consumers 

23 from Gas Hikes Fund’, consisting of such amounts as may 

24 be appropriated or credited to such trust fund as provided 

25 for in this section and section 9602(b). 


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1 ‘‘(b) TRANSFERS TO THE PROTECT CONSUMERS

2 FROM GAS PRICE HIKES FUND.—There are hereby ap3 propriated to the Protect Consumers from Gas Hikes 

4 Fund amounts equivalent to the taxes received in the 

5 Treasury under section 5896. 

6 ‘‘(c) USE OF FUNDS.—The Secretary shall pay from 

7 time to time from the Protect Consumers from Gas Price 

8 Hikes Fund to the general fund of the Treasury amounts 

9 equal to the amounts of refunds provided under section 

10 6434.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections 

12 for subchapter A of chapter 98 of such Code is amended 

13 by adding at the end the following new item: 

‘‘Sec. 9512. Protect Consumers from Gas Price Hikes Fund.’’. 

Æ 


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