Federal Gas Tax Suspension and Windfall Profits Tax Act of 2022

To amend the Internal Revenue Code of 1986 to provide for a suspension of the highway fuel tax and to impose a temporary fee on excess oil profits. 1. Short title This Act may be cited as the Federal Gas Tax Suspension and Windfall Profits Tax Act of 2022 2. Highway fuel tax suspension (a) Temporary suspension of highway fuel taxes on gasoline (1) In general Section 4081 (f) Temporary suspension of taxes on gasoline (1) In general During the applicable period, the rate of tax otherwise applicable to gasoline under subsection (a)(2)(A)(i), determined with regard to subsection (a)(2)(B), shall be reduced to zero cents per gallon. (2) Applicable period For purposes of this subsection, the term applicable period (3) Maintenance of trust fund deposits In determining the amounts to be appropriated to the Highway Trust Fund under section 9503 and to the Leaking Underground Storage Tank Trust Fund under 9508, an amount equal to the reduction in revenues to the Treasury by reason of this subsection shall be treated as taxes received in the Treasury under this section or section 4041. . (2) Effective date The amendment made by this subsection shall take effect on the date of the enactment of this Act. (b) Floor stock refunds (1) In general If— (A) before the tax suspension date, a tax referred to in section 4081(f)(2) (B) on such date such liquid is held by a dealer and has not been used and is intended for sale, there shall be credited or refunded (without interest) to the person who paid such tax (hereafter in this subsection referred to as the taxpayer (2) Time for filing claims; certifications necessary to file claims (A) In general No credit or refund shall be allowed or made under this subsection— (i) unless claim therefore is filed with the Secretary before the date which is 6 months after the tax suspension date, and (ii) in any case where liquid is held by a dealer (other than the taxpayer) on the tax suspension date, unless the taxpayer files with the Secretary— (I) a certification that the taxpayer has given a credit to such dealer with respect to such liquid against the dealer's first purchase of liquid from the taxpayer subsequent to the tax suspension date, and (II) a certification by such dealer that such dealer has given a credit to a succeeding dealer (if any) with respect to such liquid against the succeeding dealer's first purchase of liquid from such dealer subsequent to the tax suspension date. (B) Reasonableness of claims certified Any certification made under subparagraph (A) shall include an additional certification that the claim for credit was reasonably based on the taxpayer's or dealer's past business relationship with the succeeding dealer. (3) Definitions For purposes of this subsection— (A) the terms dealer held by a dealer dealer (B) the term tax suspension date (4) Certain rules to apply Rules similar to the rules of subsections (b) and (c) of section 6412 of such Code shall apply for purposes of this subsection. (c) Floor stocks tax (1) Imposition of tax In the case of any liquid on which tax would have been imposed under section 4081 (2) Liability for tax and method of payment (A) Liability for tax A person holding a liquid on the floor stocks tax date to which the tax imposed by paragraph (1) applies shall be liable for such tax. (B) Method of payment The tax imposed by paragraph (1) shall be paid in such manner as the Secretary shall prescribe. (C) Time for payment The tax imposed by paragraph (1) shall be paid on or before the date which is 6 months after the floor stocks tax date. (3) Definitions For purposes of this subsection— (A) Held by a person A liquid shall be considered as held by a person (B) Gasoline The term gasoline (C) Floor stocks tax date The term floor stocks tax date (D) Applicable period The term applicable period (4) Exception for exempt uses The tax imposed by paragraph (1) shall not apply to gasoline held by any person exclusively for any use to the extent a credit or refund of the tax imposed by section 4081 of such Code is allowable for such use. (5) Exception for fuel held in vehicle tank No tax shall be imposed by paragraph (1) on gasoline held in the tank of a motor vehicle. (6) Exception for certain amounts of fuel (A) In general No tax shall be imposed by paragraph (1) on gasoline (other than aviation gasoline) held on the floor stocks tax date by any person if the aggregate amount of gasoline held by such person on such date does not exceed 4,000 gallons. The preceding sentence shall apply only if such person submits to the Secretary (at the time and in the manner required by the Secretary) such information as the Secretary shall require for purposes of this subparagraph. (B) Exempt fuel For purposes of subparagraph (A), there shall not be taken into account fuel held by any person which is exempt from the tax imposed by paragraph (1) by reason of paragraph (4) or (5). (C) Controlled groups For purposes of this paragraph— (i) Corporations (I) In general All persons treated as a controlled group shall be treated as 1 person. (II) Controlled group The term controlled group more than 50 percent at least 80 percent (ii) Nonincorporated persons under common control Under regulations prescribed by the Secretary, principles similar to the principles of clause (i) shall apply to a group of persons under common control where 1 or more of such persons is not a corporation. (7) Other law applicable All provisions of law, including penalties, applicable with respect to the taxes imposed by section 4081 of such Code shall, insofar as applicable and not inconsistent with the provisions of this paragraph, apply with respect to the floor stock taxes imposed by paragraph (1) to the same extent as if such taxes were imposed by such section 4081. (d) Secretary For purposes of this section, the term Secretary (e) Sense of Congress It is the senses of Congress that— (1) consumers immediately receive the benefit of the reduction in taxes resulting from the amendment made by subsection (a), and (2) transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction, including immediate credits to customer accounts representing tax refunds allowed as credits against excise tax deposit payments under the floor stocks refund provisions of subsection (b). 3. Temporary oil profit fee (a) In general Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new chapter: 56 Temporary fee on excess oil profit Sec. 5896. Imposition of fee. Sec. 5897. Excess profit; etc. Sec. 5898. Special rules and definitions. 5896. Imposition of fee (a) In general In addition to any other tax imposed under this title, there is hereby imposed on any applicable taxpayer an excise fee in an amount equal to 50 percent of the excess profit of such taxpayer for such taxpayer’s first taxable year beginning after December 31, 2021. (b) Applicable taxpayer For purposes of this chapter, the term applicable taxpayer 5897. Excess profit; etc (a) General rule For purposes of this chapter, the term excess profit (b) Adjusted taxable income For purposes of this chapter, with respect to any applicable taxpayer, the adjusted taxable income for any taxable year is equal to the taxable income for such taxable year (within the meaning of section 63 and determined without regard to this subsection) increased by any interest expense deduction, charitable contribution deduction, and any net operating loss deduction carried forward from any prior 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 fee The Secretary shall provide such rules as are necessary for the withholding and deposit of the fee 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 fee The Secretary shall provide for the filing and the time of such filing of the return of the fee 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 such Code is amended by adding at the end the following new item: Chapter 56—Temporary fee on excess oil profit . (c) Deductibility of fee The first sentence of section 164(a) of such Code is amended by inserting after paragraph (4) the following new paragraph: (5) The fee imposed by section 5896. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Federal Gas Tax Suspension and Windfall Profits Tax Act of 2022 This bill suspends the excise tax on gasoline (other than aviation gasoline) until December 31, 2023. It also imposes a 50% tax on the excess profits of certain large oil companies in the first taxable year after 2021.