I 
110TH CONGRESS 
1ST SESSION H. R. 2372 
To amend the Internal Revenue Code of 1986 to impose a temporary windfall 
profit tax on crude oil, to make the revenues from such tax available 
for investments in renewable energy and energy efficiency, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 17, 2007 
Ms. DELAURO (for herself, Ms. KAPTUR, Mr. COHEN, and Mr. FATTAH) in-
troduced the following bill; which was referred to the Committee on Ways 
and Means, and in addition to the Committees on the Budget and Rules, 
for a period to be subsequently determined by the Speaker, in each case 
for consideration of such provisions as fall within the jurisdiction of the 
committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a temporary windfall profit tax on crude oil, to make 
the revenues from such tax available for investments 
in renewable energy and energy efficiency, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Windfall Energy Alter-
natives for the Nation (WEAN) Off of Oil Act of 2007’’ 
or the ‘‘WEAN Off of Oil Act of 2007’’. 
SEC. 2. WINDFALL PROFITS TAX. 
(a) IN GENERAL.—Subtitle E of the Internal Rev-
enue Code of 1986 (relating to alcohol, tobacco, and cer-
tain other excise taxes) is amended by adding at the end 
thereof the following new chapter: 
‘‘CHAPTER 56—WINDFALL PROFITS ON 
CRUDE OIL 
‘‘Sec. 5896. Imposition of tax. 
‘‘Sec. 5897. Windfall profit; removal price; adjusted base price; qualified invest-
ment. 
‘‘Sec. 5898. Special rules and definitions. 
‘‘SEC. 5896. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—In addition to any other tax im-
posed under this title, there is hereby imposed on any 
major integrated oil company (as defined in section 
167(h)(5)(B)) an excise tax equal to the excess of— 
‘‘(1) the amount equal to 50 percent of the 
windfall profit from all barrels of taxable crude oil 
removed from the property during each taxable year, 
over 
‘‘(2) the amount of qualified investment by such 
company during such taxable year. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
‘‘(b) FRACTIONAL PART OF BARREL.—In the case of 
a fraction of a barrel, the tax imposed by subsection (a) 
shall be the same fraction of the amount of such tax im-
posed on the whole barrel. 
‘‘(c) TAX PAID BY PRODUCER.—The tax imposed by 
this section shall be paid by the producer of the taxable 
crude oil. 
‘‘SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; AD-
JUSTED BASE PRICE; QUALIFIED INVEST-
MENT. 
‘‘(a) GENERAL RULE.—For purposes of this chapter, 
the term ‘windfall profit’ means the excess of the removal 
price of the barrel of taxable crude oil over the adjusted 
base price of such barrel. 
‘‘(b) REMOVAL PRICE.—For purposes of this chap-
ter— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘removal price’ 
means the amount for which the barrel of taxable 
crude oil is sold. 
‘‘(2) SALES BETWEEN RELATED PERSONS.—In 
the case of a sale between related persons, the re-
moval price shall not be less than the constructive 
sales price for purposes of determining gross income 
from the property under section 613. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
‘‘(3) OIL REMOVED FROM PROPERTY BEFORE 
SALE.—If crude oil is removed from the property be-
fore it is sold, the removal price shall be the con-
structive sales price for purposes of determining 
gross income from the property under section 613. 
‘‘(4) REFINING BEGUN ON PROPERTY.—If the 
manufacture or conversion of crude oil into refined 
products begins before such oil is removed from the 
property— 
‘‘(A) such oil shall be treated as removed 
on the day such manufacture or conversion be-
gins, and 
‘‘(B) the removal price shall be the con-
structive sales price for purposes of determining 
gross income from the property under section 
613. 
‘‘(5) PROPERTY.—The term ‘property’ has the 
meaning given such term by section 614. 
‘‘(c) ADJUSTED BASE PRICE DEFINED.— 
‘‘(1) IN GENERAL.—For purposes of this chap-
ter, the term ‘adjusted base price’ means $50 for 
each barrel of taxable crude oil plus an amount 
equal to— 
‘‘(A) such base price, multiplied by 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
‘‘(B) the inflation adjustment for the cal-
endar year in which the taxable crude oil is re-
moved from the property. 
The amount determined under the preceding sen-
tence shall be rounded to the nearest cent. 
‘‘(2) INFLATION ADJUSTMENT.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the inflation adjustment for any cal-
endar year after 2008 is the percentage by 
which— 
‘‘(i) the implicit price deflator for the 
gross national product for the preceding 
calendar year, exceeds 
‘‘(ii) such deflator for the calendar 
year ending December 31, 2007. 
‘‘(B) FIRST REVISION OF PRICE DEFLATOR 
USED.—For purposes of subparagraph (A), the 
first revision of the price deflator shall be used. 
‘‘(d) QUALIFIED INVESTMENT.—For purposes of this 
chapter— 
‘‘(1) IN GENERAL.—The term ‘qualified invest-
ment’ means any amount paid or incurred with re-
spect to— 
‘‘(A) section 263(c) costs, 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
‘‘(B) qualified refinery property (as defined 
in section 179C(c) and determined without re-
gard to any termination date), 
‘‘(C) any qualified facility described in 
paragraph (1), (2), (3), or (4) of section 45(d) 
(determined without regard to any placed in 
service date), and 
‘‘(D) any facility for the production of al-
cohol used as a fuel (within the meaning of sec-
tion 40) or biodiesel or agri-biodiesel used as a 
fuel (within the meaning of section 40A). 
‘‘(2) SECTION 263(c) COSTS.—For purposes of 
this subsection, the term ‘section 263(c) costs’ 
means intangible drilling and development costs in-
curred by the taxpayer which (by reason of an elec-
tion under section 263(c)) may be deducted as ex-
penses for purposes of this title (other than this 
paragraph). Such term shall not include costs in-
curred in drilling a nonproductive well. 
‘‘SEC. 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 on any taxable crude oil. 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 
liable for tax under section 5896 shall keep such records, 
make such returns, and furnish such information (to the 
Secretary and to other persons having an interest in the 
taxable crude oil) with respect to such oil as the Secretary 
may by regulations prescribe. 
‘‘(c) RETURN OF WINDFALL PROFIT TAX.—The Sec-
retary shall provide for the filing and the time of such 
filing of the return of the tax imposed under section 5896. 
‘‘(d) DEFINITIONS.—For purposes of this chapter— 
‘‘(1) PRODUCER.—The term ‘producer’ means 
the holder of the economic interest with respect to 
the crude oil. 
‘‘(2) CRUDE OIL.— 
‘‘(A) IN GENERAL.—The term ‘crude oil’ 
includes crude oil condensates and natural gas-
oline. 
‘‘(B) EXCLUSION OF NEWLY DISCOVERED 
OIL.—Such term shall not include any oil pro-
duced from a well drilled after the date of the 
enactment of the WEAN Off of Oil Act of 
2007, except with respect to any oil produced 
from a well drilled after such date on any prov-
en oil or gas property (within the meaning of 
section 613A(c)(9)(A)). 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
‘‘(3) BARREL.—The term ‘barrel’ means 42 
United States gallons. 
‘‘(e) ADJUSTMENT OF REMOVAL PRICE.—In deter-
mining the removal price of oil from a property in the case 
of any transaction, the Secretary may adjust the removal 
price to reflect clearly the fair market value of oil removed. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this chapter. 
‘‘(g) TERMINATION.—This section shall not apply to 
taxable crude oil removed after the date which is 3 years 
after the date of the enactment of this section.’’. 
(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) of the Internal Rev-
enue Code of 1986 (relating to deduction for taxes) is 
amended by inserting after paragraph (5) the following 
new paragraph: 
‘‘(6) The windfall profit tax imposed by section 
5896.’’. 
(d) EFFECTIVE DATE.— 
(1) IN GENERAL.—The amendments made by 
this section shall apply to crude oil removed after 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
the date of the enactment of this Act, in taxable 
years ending after such date. 
(2) TRANSITIONAL
RULES.—For the period 
ending December 31, 2007, the Secretary of the 
Treasury or the Secretary’s delegate shall prescribe 
rules relating to the administration of chapter 56 of 
the Internal Revenue Code of 1986. To the extent 
provided in such rules, such rules shall supplement 
or supplant for such period the administrative provi-
sions contained in chapter 56 of such Code (or in so 
much of subtitle F of such Code as relates to such 
chapter 56). 
SEC. 3. STRATEGIC ENERGY EFFICIENCY AND RENEW-
ABLES RESERVE FOR INVESTMENTS IN RE-
NEWABLE 
ENERGY 
AND 
ENERGY 
EFFI-
CIENCY. 
(a) IN GENERAL.—For budgetary purposes, the addi-
tional Federal receipts by reason of the enactment of this 
Act shall be held in a separate account to be known as 
the ‘‘Strategic Energy Efficiency and Renewables Re-
serve’’. The Strategic Energy Efficiency and Renewables 
Reserve shall be available to offset the cost of subsequent 
legislation— 
(1) to accelerate the use of clean domestic re-
newable energy resources and alternative fuels; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
(2) to promote the utilization of energy-efficient 
products and practices and conservation; and 
(3) to increase research, development, and de-
ployment of clean renewable energy and efficiency 
technologies. 
(b) PROCEDURE FOR ADJUSTMENTS.— 
(1) BUDGET COMMITTEE CHAIRMAN.—After the 
reporting of a bill or joint resolution, or the offering 
of an amendment thereto or the submission of a con-
ference report thereon, providing funding for the 
purposes set forth in subsection (a) in excess of the 
amounts provided for those purposes for fiscal year 
2007, the chairman of the Committee on the Budget 
of the applicable House of Congress shall make the 
adjustments set forth in paragraph (2) for the 
amount of new budget authority and outlays in that 
measure and the outlays flowing from that budget 
authority. 
(2) MATTERS TO BE ADJUSTED.—The adjust-
ments referred to in paragraph (1) are to be made 
to— 
(A) the discretionary spending limits, if 
any, set forth in the appropriate concurrent res-
olution on the budget; 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS
(B) the allocations made pursuant to the 
appropriate concurrent resolution on the budget 
pursuant to section 302(a) of the Congressional 
Budget Act of 1974; and 
(C) the budget aggregates contained in the 
appropriate concurrent resolution on the budget 
as required by section 301(a) of the Congres-
sional Budget Act of 1974. 
(3) AMOUNTS OF ADJUSTMENTS.—The adjust-
ments referred to in paragraphs (1) and (2) shall 
not exceed the receipts estimated by the Congres-
sional Budget Office that are attributable to this Act 
for the fiscal year in which the adjustments are 
made. 
Æ 
VerDate Aug 31 2005 
03:02 May 19, 2007
Jkt 059200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6301
E:\BILLS\H2372.IH
H2372
hmoore on PRODPC68 with HMBILLS