Stop Gas Price Gouging Tax and Rebate Act

To amend the Internal Revenue Code of 1986 to establish a windfall profits excise tax on crude oil and to rebate the tax collected back to individual taxpayers, and for other purposes. 1. Short title This Act may be cited as the Stop Gas Price Gouging Tax and Rebate Act 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: 56 Windfall profits on crude oil Sec. 5896. Imposition of tax. Sec. 5897. Windfall profit. Sec. 5898. Special rules and definitions. 5896. Imposition of tax (a) In general In addition to any other tax imposed under this title, there is hereby imposed on any applicable taxpayer an excise tax in an amount equal to 50 percent of the excess of the windfall profit (as defined in section 5897(a)) of such taxpayer. (b) Applicable taxpayer For purposes of this chapter, the term applicable taxpayer (1) which has an average daily worldwide production of crude oil of at least 300,000 barrels for the taxable year, and (2) which had gross receipts in excess of $1,000,000,000 for its last taxable year ending during calendar year 2005. For purposes of this subsection, all persons treated as a single employer under subsections (a) and (b) of section 52 shall be treated as 1 person and, in case of a short taxable year, the rule under section 448(c)(3)(B) shall apply. 5897. Windfall profit (a) General rule For purposes of this chapter, the term windfall profit (b) Adjusted taxable income For purposes of this chapter, with respect to any applicable taxpayer, the adjusted taxable income for taxable year 2022 is equal to the taxable income for such taxable year (within the meaning of section 63 and determined without regard to this subsection)— (1) increased by any interest expense deduction, charitable contribution deduction, and any net operating loss deduction carried forward from any prior taxable year, and (2) reduced by any interest income, dividend income, and net operating losses to the extent such losses exceed taxable income for the taxable year. In the case of any applicable taxpayer which is a foreign corporation, the adjusted taxable income shall be determined with respect to such income which is effectively connected with the conduct of a trade or business in the United States. (c) Reasonably inflated average profit For purposes of this chapter, with respect to any applicable taxpayer, the reasonably inflated average profit for any taxable year is an amount equal to the average of the adjusted taxable income of such taxpayer for taxable years beginning during the 2015–2019 taxable year period (determined without regard to the taxable year with the highest adjusted taxable income in such period) plus 10 percent of such average. 5898. Special rules and definitions (a) Withholding and deposit of tax The Secretary shall provide such rules as are necessary for the withholding and deposit of the tax imposed under section 5896. (b) Records and information Each taxpayer liable for tax under section 5896 shall keep such records, make such returns, and furnish such information as the Secretary may by regulations prescribe. (c) Return of windfall profit tax The Secretary shall provide for the filing and the time of such filing of the return of the tax imposed under section 5896. (d) Crude oil The term crude oil (e) Businesses under common control For purposes of this chapter, all members of the same controlled group of corporations (within the meaning of section 267(f)) and all persons under common control (within the meaning of section 52(b) but determined by treating an interest of more than 50 percent as a controlling interest) shall be treated as 1 person. (f) Regulations The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter. . (b) Clerical amendment The table of chapters for subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Chapter 56. Windfall profit on crude oil. . (c) Deductibility of windfall profit tax The first sentence of section 164(a) (6) The windfall profit tax imposed by section 5896. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2021. 3. Energy price rebates (a) In general Subchapter B of chapter 65 6433. Energy price rebates (a) In general In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for taxable year 2022 an amount equal to the sum of the energy price rebate amount for each month beginning in such taxable year. (b) Energy price rebate amount For purposes of this section— (1) In general The term energy price rebate amount (2) Special rule for joint returns In the case of an eligible individual filing a joint return, the energy price rebate amount shall be 150 percent of the amount determined under paragraph (1) with respect to other taxpayers. (3) Limitation based on adjusted gross income The amount of the credit allowed by subsection (a) (determined without regard to this subsection and subsection (e)) shall be reduced (but not below zero) by 5 percent of so much of the eligible individual's adjusted gross income as exceeds— (A) $150,000 in the case of a joint return, (B) $112,500 in the case of a head of household, and (C) $75,000 in any other case. (c) Eligible individual For purposes of this section, the term eligible individual (1) any nonresident alien individual, (2) any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and (3) an estate or trust. (d) Definitions and special rules (1) Dependent defined For purposes of this section, the term dependent (2) Identification number requirement (A) In general In the case of a return other than a joint return, the energy price rebate amount in subsection (b)(1) shall be treated as being zero unless the taxpayer includes the valid identification number of the taxpayer on the return of tax for the taxable year. (B) Joint returns In the case of a joint return, the energy price rebate amount in subsection (b)(1) shall be treated as being— (i) 50 percent of the amount otherwise determined without regard to this paragraph if the valid identification number of only 1 spouse is included on the return of tax for the taxable year, and (ii) zero if the valid identification number of neither spouse is so included. (C) Valid identification number For purposes of this paragraph, the term valid identification number (D) Special rule for members of the Armed Forces Subparagraph (B) shall not apply in the case where at least 1 spouse was a member of the Armed Forces of the United States at any time during the taxable year and the valid identification number of at least 1 spouse is included on the return of tax for the taxable year. (E) Coordination with certain advance payments In the case of any payment determined pursuant to subsection (f)(6), a valid identification number shall be treated for purposes of this paragraph as included on the taxpayer’s return of tax if such valid identification number is available to the Secretary as described in such subsection. (F) Mathematical or clerical error authority Any omission of a correct valid identification number required under this paragraph shall be treated as a mathematical or clerical error for purposes of applying section 6213(g)(2) to such omission. (3) Credit treated as refundable The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1. (e) Coordination with advance refunds of credit (1) Reduction of refundable credit The amount of the credit which would (but for this paragraph) be allowable under subsection (a) for any taxable year shall be reduced (but not below zero) by the aggregate refunds and credits made or allowed to the taxpayer (or, except as otherwise provided by the Secretary, any dependent of the taxpayer) under subsection (f) for such taxable year. Any failure to so reduce the credit shall be treated as arising out of a mathematical or clerical error and assessed according to section 6213(b)(1). (2) Joint returns Except as otherwise provided by the Secretary, in the case of a refund or credit made or allowed under subsection (f) with respect to a joint return, half of such refund or credit shall be treated as having been made or allowed to each individual filing such return. (f) Advance refunds and credits (1) In general Subject to paragraphs (5) and (6), for any rebate taxable year, each individual who was an eligible individual for such individual’s first taxable year beginning in 2020 shall be treated as having made a payment against the tax imposed by chapter 1 for such applicable taxable year in an amount equal to advance refund amount for such rebate taxable year. (2) Advance refund amount (A) In general For purposes of paragraph (1), the advance refund amount is the amount that would have been allowed as a credit under this section for such taxable year if this section (other than subsection (e) and this subsection) had applied to such taxable year. (B) Treatment of deceased individuals For purposes of determining the advanced refund amount with respect to such taxable year— (i) any individual who was deceased before January 1, 2022 shall be treated for purposes of applying subsection (d)(2) in the same manner as if the valid identification number of such person was not included on the return of tax for the applicable taxable year (except that subparagraph (D) thereof shall not apply), and (ii) notwithstanding clause (i), in the case of a joint return with respect to which only 1 spouse is deceased before January 1, 2022, such deceased spouse was a member of the Armed Forces of the United States at any time during the applicable taxable year, and the valid identification number of such deceased spouse is included on the return of tax for the applicable taxable year, the valid identification number of 1 (and only 1) spouse shall be treated as included on the return of tax for the applicable taxable year for purposes of applying subsection (d)(2)(B) with respect to such joint return. (3) Timing and manner of payments The Secretary shall, subject to the provisions of this title, refund or credit any overpayment attributable to this section and determined with respect to any month as rapidly as possible, consistent with a rapid effort to make payments attributable to such overpayments electronically if appropriate. No refund or credit shall be made or allowed under this subsection after December 31, 2022. (4) No interest No interest shall be allowed on any overpayment attributable to this subsection. (5) Application to individuals who have filed a return of tax for 2021 (A) Application to 2021 returns filed at time of initial determination If, at the time of any determination made pursuant to paragraph (3), the individual referred to in paragraph (1) has filed a return of tax for the individual’s first taxable year beginning in 2021, paragraph (1) shall be applied with respect to such individual by substituting 2021 2020 (B) Additional payment (i) In general In the case of any individual who files, before the additional payment determination date, a return of tax for such individual’s first taxable year beginning in 2021, the Secretary shall make a payment (in addition to any payment made under paragraph (1)) to such individual equal to the excess (if any) of— (I) the amount which would be determined under paragraph (1) (after the application of subparagraph (A)) by applying paragraph (1) as of the additional payment determination date, over (II) the amount of any payment made with respect to such individual under paragraph (1). (ii) Additional payment determination date The term additional payment determination date (I) the date which is 90 days after the 2021 calendar year filing deadline, or (II) September 1, 2022. (6) Application to certain individuals who have not filed a return of tax for 2020 or 2021 at the time of determination In the case of any individual who, at the time of any determination made pursuant to paragraph (3), has filed a tax return for neither the year described in paragraph (1) nor for the year described in paragraph (5)(A), the Secretary shall, consistent with rules similar to the rules of section 6428A(f)(5)(H)(i), apply paragraph (1) on the basis of information available to the Secretary and shall, on the basis of such information, determine the advance refund amount with respect to such individual without regard to subsection (d) unless the Secretary has reason to know that such amount would otherwise be reduced by reason of such subsection. (7) Special rule related to time of filing return Solely for purposes of this subsection, a return of tax shall not be treated as filed until such return has been processed by the Internal Revenue Service. (g) Regulations The Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including— (1) regulations or other guidance providing taxpayers the opportunity to provide the Secretary information sufficient to allow the Secretary to make payments to such taxpayers under subsection (f) (including the determination of the amount of such payment) if such information is not otherwise available to the Secretary, and (2) regulations or other guidance to ensure to the maximum extent administratively practicable that, in determining the amount of any credit under subsection (a) and any credit or refund under subsection (f), an individual is not taken into account more than once, including by different taxpayers and including by reason of a change in joint return status or dependent status between the taxable year for which an advance refund amount is determined and the taxable year for which a credit under subsection (a) is determined. (h) Outreach The Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers described in subsection (g)(1) learn of their eligibility for the advance refunds and credits under subsection (f); are advised of the opportunity to receive such advance refunds and credits as provided under subsection (g)(1); and are provided assistance in applying for such advance refunds and credits. . (b) Treatment of certain possessions (1) Payments to possessions with mirror code tax systems The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (2) Payments to other possessions The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents. (3) Inclusion of administrative expenses The Secretary of the Treasury shall pay to each possession of the United States to which the Secretary makes a payment under paragraph (1) or (2) an amount equal to the increase (if any) of the administrative expenses of such possession— (A) in the case of a possession described in paragraph (1), by reason of the amendments made by this section, and (B) in the case of a possession described in paragraph (2), by reason of carrying out the plan described in such paragraph, or The amount described in subparagraph (A) shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession. (4) Coordination with credit allowed against united states income taxes No credit shall be allowed against United States income taxes under section 6433 (A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or (B) who is eligible for a payment under a plan described in paragraph (2). (5) Mirror code tax system For purposes of this subsection, the term mirror code tax system (6) Treatment of payments For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section. (c) Administrative provisions (1) Definition of deficiency Section 6211(b)(4)(A) 6428A, 6428B 6428A, 6428B, 6433, (2) Exception from reduction or offset Any refund payable by reason of section 6433(f) (A) subject to reduction or offset pursuant to subsection (c), (d), (e), or (f) of section 6402 (B) reduced or offset by other assessed Federal taxes that would otherwise be subject to levy or collection. (3) Assignment of benefits (A) In general The right of any person to any applicable payment shall not be transferable or assignable, at law or in equity, and no applicable payment shall be subject to, execution, levy, attachment, garnishment, or other legal process, or the operation of any bankruptcy or insolvency law. (B) Encoding of payments In the case of an applicable payment described in subparagraph (E)(iii)(I) that is paid electronically by direct deposit through the Automated Clearing House (ACH) network, the Secretary of the Treasury (or the Secretary's delegate) shall— (i) issue the payment using a unique identifier that is reasonably sufficient to allow a financial institution to identify the payment as an applicable payment, and (ii) further encode the payment pursuant to the same specifications as required for a benefit payment defined in section 212.3 of title 31, Code of Federal Regulations. (C) Garnishment (i) Encoded payments In the case of a garnishment order that applies to an account that has received an applicable payment that is encoded as provided in subparagraph (B), a financial institution shall follow the requirements and procedures set forth in part 212 of title 31, Code of Federal Regulations, except— (I) notwithstanding section 212.4 of title 31, Code of Federal Regulations (and except as provided in subclause (II)), a financial institution shall not fail to follow the procedures of sections 212.5 212.6 (II) a financial institution shall not, with regard to any applicable payment, be required to provide the notice referenced in sections 212.6 and 212.7 of title 31, Code of Federal Regulations. (ii) Other payments In the case of a garnishment order (other than an order that has been served by the United States) that has been received by a financial institution and that applies to an account into which an applicable payment that has not been encoded as provided in subparagraph (B) has been deposited electronically on any date during the lookback period or into which an applicable payment that has been deposited by check on any date in the lookback period, the financial institution, upon the request of the account holder, shall treat the amount of the funds in the account at the time of the request, up to the amount of the applicable payment (in addition to any amounts otherwise protected under part 212 of title 31, Code of Federal Regulations), as exempt from a garnishment order without requiring the consent of the party serving the garnishment order or the judgment creditor. (iii) Liability A financial institution that acts in good faith in reliance on clauses (i) or (ii) shall not be subject to liability or regulatory action under any Federal or State law, regulation, court or other order, or regulatory interpretation for actions concerning any applicable payments. (D) No reclamation rights This paragraph shall not alter the status of applicable payments as tax refunds or other nonbenefit payments for purpose of any reclamation rights of the Department of the Treasury or the Internal Revenue Service as per part 210 of title 31, Code of Federal Regulations. (E) Definitions For purposes of this paragraph— (i) Account holder The term account holder (ii) Account review The term account review (iii) Applicable payment The term applicable payment (I) any payment made to an individual under this section (other than any payment made pursuant to paragraph (5)), (II) any advance payment made by a possession of the United States with a mirror code tax system (as defined in section 24(h)) pursuant to an election under paragraph (5)(B) which corresponds to a payment described in subclause (I), and (III) any advance payment made by American Samoa pursuant to a program for making such payments which is described in paragraph (5)(C)(ii). (iv) Garnishment The term garnishment (v) Garnishment order The term garnishment order (vi) Lookback period The term lookback period (4) Conforming amendments (A) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 6433, 6431, (B) The table of sections for subchapter B of chapter 65 Sec. 6433. Energy price rebates. .

Summary: Stop Gas Price Gouging Tax and Rebate Act This bill imposes an excise tax of 50% of the excess of the windfall profit of a producer of crude oil (including crude oil condensates and natural gasoline) that has an average daily worldwide production of crude oil of at least 300,000 barrels for the taxable year, and had gross receipts in excess of $1 billion for its last taxable year during 2005. The bill defines windfall profit as the excess of the adjusted taxable income of such producer for taxable year 2022 over the reasonably inflated average profit for such taxable year. The bill requires payment of energy price rebates to eligible individuals.