I 
112TH CONGRESS 
2D SESSION 
H. R. 3784 
To amend the Internal Revenue Code of 1986 to impose a windfall profit 
tax on oil and natural gas (and products thereof) and to allow an 
income tax credit for purchases of fuel-efficient passenger vehicles, and 
to allow grants for mass transit. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 18, 2012 
Mr. KUCINICH (for himself, Ms. WOOLSEY, Mr. CONYERS, Mr. LANGEVIN, Ms. 
FUDGE, and Mr. FILNER) introduced the following bill; which was re-
ferred to the Committee on Ways and Means, and in addition to the 
Committee on Transportation and Infrastructure, for a period to be sub-
sequently 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 windfall profit tax on oil and natural gas (and products 
thereof) and to allow an income tax credit for purchases 
of fuel-efficient passenger vehicles, and to allow grants 
for mass transit. 
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 Spike Act 
of 2012’’. 
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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 
PROFIT 
ON 
CRUDE OIL, NATURAL GAS, AND PROD-
UCTS THEREOF 
‘‘Sec. 5896. Imposition of tax. 
‘‘SEC. 5896. IMPOSITION OF TAX. 
‘‘(a) IN GENERAL.—In addition to any other tax im-
posed under this title, there is hereby imposed an excise 
tax on the sale in the United States of any crude oil, nat-
ural gas, or other taxable product a tax equal to the appli-
cable percentage of the windfall profit on such sale. 
‘‘(b) DEFINITIONS.—For purposes of this section— 
‘‘(1) TAXABLE
PRODUCT.—The term ‘taxable 
product’ means any fuel which is a product of crude 
oil or natural gas. 
‘‘(2) WINDFALL PROFIT.—The term ‘windfall 
profit’ means, with respect to any sale, so much of 
the profit on such sale as exceeds a reasonable prof-
it. 
‘‘(3) APPLICABLE
PERCENTAGE.—The term 
‘applicable percentage’ means— 
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‘‘(A) 50 percent to the extent that the 
profit on the sale exceeds 100 percent of the 
reasonable profit on the sale but does not ex-
ceed 102 percent of the reasonable profit on the 
sale, 
‘‘(B) 75 percent to the extent that the 
profit on the sale exceeds 102 percent of the 
reasonable profit on the sale but does not ex-
ceed 105 percent of the reasonable profit on the 
sale, and 
‘‘(C) 100 percent to the extent that the 
profit on the sale exceeds 105 percent of the 
reasonable profit on the sale. 
‘‘(4) REASONABLE PROFIT.—The term ‘reason-
able profit’ means the amount determined by the 
Reasonable Profits Board to be a reasonable profit 
on the sale. 
‘‘(c) LIABILITY FOR PAYMENT OF TAX.—The taxes 
imposed by subsection (a) shall be paid by the seller.’’. 
(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. WINDFALL PROFIT ON CRUDE OIL AND REFINED 
PETROLEUM PRODUCTS.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
SEC. 3. CREDIT FOR PURCHASING FUEL EFFICIENT AMER-
ICAN-MADE PASSENGER VEHICLES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. PURCHASE OF FUEL-EFFICIENT AMERICAN- 
MADE PASSENGER VEHICLES. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to 
the cost of any qualified passenger vehicle purchased by 
the taxpayer during the taxable year. 
‘‘(b) MAXIMUM CREDIT.— 
‘‘(1) IN GENERAL.—The credit allowed by this 
section for the taxable year shall be— 
‘‘(A) $3,000 in the case of a qualified pas-
senger vehicle not described in subparagraph 
(B) or (C) if the vehicle’s fuel economy is with-
in the 10 percent most fuel efficient range, 
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‘‘(B) $4,500 in the case of a qualified pas-
senger vehicle not described in subparagraph 
(C) if the vehicle’s fuel economy is within the 
5 percent most fuel efficient range, and 
‘‘(C) $6,000 in the case of a qualified pas-
senger vehicle the fuel economy of which is at 
least 65 miles per gallon. 
‘‘(2) DETERMINATION OF RANGES.— 
‘‘(A) IN GENERAL.—A vehicle sold during 
a calendar year is within the 10 percent most 
fuel efficient range if the fuel economy for such 
vehicle is equal to or greater than the lowest 
fuel economy of a vehicle included in the group 
consisting of the 10 percent of the vehicles sold 
during the preceding calendar year with the 
highest fuel economy. A similar rule shall be 
applied to determine the 5 percent most fuel ef-
ficient range. 
‘‘(B) SEPARATE DETERMINATION.—The 5 
and 10 percent most fuel efficient ranges shall 
be determined separately for— 
‘‘(i) trucks and sport utility vehicles 
as a group, and 
‘‘(ii) other qualified vehicles as a 
group. 
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‘‘(C) RANGES TO BE PUBLISHED BEFORE 
BEGINNING OF YEAR.—Before the beginning of 
each calendar year, the Secretary shall publish 
in the Federal Register the 5 and 10 percent 
most fuel efficient ranges which apply for such 
calendar year. In the case of ranges for cal-
endar year 2011, such ranges shall be published 
as soon as possible. 
‘‘(c) QUALIFIED PASSENGER VEHICLE.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified auto-
mobile’ means any automobile (as defined in section 
4064(b))— 
‘‘(A) which is purchased after the date of 
the enactment of this section, 
‘‘(B) which is assembled in the United 
States by individuals employed under a collec-
tive bargaining agreement, 
‘‘(C) the original use of which begins with 
the taxpayer, 
‘‘(D) substantially all of the use of which 
is for personal, nonbusiness purposes, and 
‘‘(E) the fuel economy of such automobile 
is within the 10 percent most fuel efficient 
range. 
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‘‘(2) FUEL ECONOMY.—Fuel economy shall be 
determined in accordance with section 4064. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) BASIS
REDUCTION.—The basis of any 
property for which a credit is allowable under sub-
section (a) shall be reduced by the amount of such 
credit. 
‘‘(2) PROPERTY USED OUTSIDE UNITED STATES 
NOT QUALIFIED.—No credit shall be allowed under 
subsection (a) with respect to any property referred 
to in section 50(b).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such subpart A is amended by inserting after the item 
relating to section 25D the following new item: 
‘‘Sec. 25E. Purchase of fuel-efficient American-made passenger vehicles.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
SEC. 4. MASS TRANSIT FARE REDUCTIONS DURING GAS 
PRICE SPIKES. 
(a) IN GENERAL.—The Secretary of Transportation 
may make grants to the operator of a mass transit system 
to assist the operator in reducing fares paid by passengers 
using the system. 
(b) USE OF GRANTS.—Grants received under the 
program shall be used solely for implementing a fare re-
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duction described in subsection (a) that is applied equally 
to all passengers using the mass transit system. 
(c) MASS TRANSIT SYSTEM DEFINED.—In this sec-
tion, the term ‘‘mass transit system’’ includes bus and 
commuter rail systems. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section in 
a fiscal year amounts equivalent to the excess (if any) of— 
(1) the revenues received during the preceding 
fiscal year pursuant to chapter 56 of the Internal 
Revenue Code of 1986 (relating to windfall profit on 
crude oil and refined petroleum products), over 
(2) the revenue cost for such fiscal year of sec-
tion 25E of such Code (relating to purchase of fuel- 
efficient American-made passenger vehicles). 
Amounts authorized under the preceding sentence shall re-
main available until expended. 
SEC. 5. REASONABLE PROFITS BOARD. 
(a) ESTABLISHMENT.—There is established an inde-
pendent board to be known as the ‘‘Reasonable Profits 
Board’’ (hereafter in this section referred to as the 
‘‘Board’’). 
(b) DUTIES.—The Board shall make reasonable prof-
it determinations for purposes of applying section 5896 
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of the Internal Revenue Code of 1986 (relating to windfall 
profit on crude oil, natural gas, and products thereof). 
(c) ADVISORY COMMITTEE.—The Board shall be con-
sidered an advisory committee within the meaning of the 
Federal Advisory Committee Act (5 U.S.C. App.). 
(d) APPOINTMENT.— 
(1) MEMBERS.—The Board shall be composed 
of 3 members appointed by the President of the 
United States. 
(2) TERM.—Members of the Board shall be ap-
pointed for a term of 3 years. 
(3) BACKGROUND.—The members shall have no 
financial interests in any of the businesses for which 
reasonable profits are determined by the Board. 
(e) PAY AND TRAVEL EXPENSES.— 
(1) PAY.—Notwithstanding section 7 of the 
Federal Advisory Committee Act (5 U.S.C. App.), 
members of the Board shall be paid at a rate equal 
to the daily equivalent of the minimum annual rate 
of basic pay for level IV of the Executive Schedule 
under section 5315 of title 5, United States Code, 
for each day (including travel time) during which the 
member is engaged in the actual performance of du-
ties vested in the Board. 
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(2) TRAVEL EXPENSES.—Members shall receive 
travel expenses, including per diem in lieu of subsist-
ence, in accordance with section 5702 and 5703 of 
title 5, United States Code. 
(f) DIRECTOR OF STAFF.— 
(1) QUALIFICATIONS.—The Board shall appoint 
a Director who has no financial interests in any of 
the businesses for which reasonable profits are de-
termined by the Board. 
(2) PAY.—Notwithstanding section 7 of the 
Federal Advisory Committee Act (5 U.S.C. App.), 
the Director shall be paid at the rate of basic pay 
payable for level IV of the Executive Schedule under 
section 5315 of title 5, United States Code. 
(g) STAFF.— 
(1) ADDITIONAL
PERSONNEL.—The Director, 
with the approval of the Board, may appoint and fix 
the pay of additional personnel. 
(2) APPOINTMENTS.—The Director may make 
such appointments without regard to the provisions 
of title 5, United States Code, governing appoint-
ments in the competitive service, and any personnel 
so appointed may be paid without regard to the pro-
visions of chapter 51 and subchapter III of chapter 
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53 of that title relating to classification and General 
Schedule pay rates. 
(3) DETAILEES.—Upon the request of the Di-
rector, the head of any Federal department or agen-
cy may detail any of the personnel of that depart-
ment or agency to the Board to assist the Board in 
accordance with an agreement entered into with the 
Board. 
(4) ASSISTANCE.—The Comptroller General of 
the United States may provide assistance, including 
the detailing of employees, to the Board in accord-
ance with an agreement entered into with the Board. 
(h) OTHER AUTHORITY.— 
(1) EXPERTS AND CONSULTANTS.—The Board 
may procure by contract, to the extent funds are 
available, the temporary or intermittent services of 
experts or consultants pursuant to section 3109 of 
title 5, United States Code. 
(2) LEASING.—The Board may lease space and 
acquire personal property to the extent that funds 
are available. 
(i) FUNDING.—There are authorized to be appro-
priated such funds as are necessary to carry out this sec-
tion. 
Æ 
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