I 
109TH CONGRESS 
1ST SESSION H. R. 3752 
To amend the Internal Revenue Code of 1986 to impose a windfall profit 
tax on crude oil and to ease gas prices for consumers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 13, 2005 
Mr. MENENDEZ introduced the following bill; which was referred to the 
Committee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a windfall profit tax on crude oil and to ease gas prices 
for consumers, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Gas Price Relief Act 
of 2005’’. 
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 
the following new chapter:
‘‘CHAPTER 56—WINDFALL PROFITS ON 
CRUDE OIL 
‘‘Sec. 5896. Imposition of tax. 
‘‘Sec. 5897. Windfall profit; removal price; base price; qualified investment. 
‘‘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 inte-
grated oil company (as defined in section 291(b)(4)) 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. 
‘‘(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; BASE 
PRICE; QUALIFIED INVESTMENT. 
‘‘(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 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. 
‘‘(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) BASE PRICE DEFINED.—For purposes of this 
chapter, the term ‘base price’ means $40 for each barrel 
of taxable crude oil. 
‘‘(d) QUALIFIED INVESTMENT.—For purposes of this 
chapter, the term ‘qualified investment’ means any 
amount paid or incurred with respect to any qualified fa-
cility described in paragraph (1), (2), (3), or (4) of section 
45(d) (determined without regard to any placed in service 
date). 
‘‘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. 
‘‘(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