‘‘(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 Windfall Profits Rebate Act of 
2005, 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)). 
‘‘(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 
the date of the enactment of this Act, in taxable 
years ending after such date. 
(2) TRANSITIONAL
RULES.—For the period 
ending December 31, 2005, 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. ENERGY CONSUMER REBATE. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 (relating to rules of special 
application in the case of abatements, credits, and re-
funds) is amended by adding at the end the following new 
section: 
‘‘SEC. 6430. ENERGY CONSUMER REBATE. 
‘‘(a) GENERAL RULE.—Except as otherwise provided 
in this section, each individual shall be treated as having 
made a payment against the tax imposed by chapter 1 for 
each taxable year beginning after December 31, 2005, in 
an amount equal to the lesser of— 
‘‘(1) the amount of the taxpayer’s liability for 
tax for such taxpayer’s preceding taxable year, or 
‘‘(2) the applicable amount. 
‘‘(b) LIABILITY FOR TAX.—For purposes of this sec-
tion, the liability for tax for any taxable year shall be the 
excess (if any) of— 
‘‘(1) the sum of— 
‘‘(A) the taxpayer’s regular tax liability 
(within the meaning of section 26(b)) for the 
taxable year,
‘‘(B) the tax imposed by section 55(a) with 
respect to such taxpayer for the taxable year, 
and 
‘‘(C) the taxpayer’s social security taxes 
(within the meaning of section 24(d)(2)) for the 
taxable year, over 
‘‘(2) the sum of the credits allowable under part 
IV of subchapter A of chapter 1 (other than the 
credits allowable under subpart C thereof, relating to 
refundable credits) for the taxable year. 
‘‘(c) APPLICABLE AMOUNT.—For purposes of this 
section, the applicable amount for any taxpayer shall be 
determined by the Secretary not later than the date speci-
fied in subsection (d)(1) taking into account the number 
of such taxpayers and the amount of revenues in the 
Treasury resulting from the tax imposed by section 5896 
for the calendar year preceding the taxable year. 
‘‘(d) DATE PAYMENT DEEMED MADE.— 
‘‘(1) IN GENERAL.—The payment provided by 
this section shall be deemed made on February 1 of 
the calendar year ending with or within the taxable 
year. 
‘‘(2) REMITTANCE
OF
PAYMENT.—The Sec-
retary shall remit to each taxpayer the payment de-
scribed in paragraph (1) not later that the date
which is 30 days after the date specified in para-
graph (1). 
‘‘(e) CERTAIN PERSONS NOT ELIGIBLE.—This sec-
tion shall not apply to— 
‘‘(1) any individual with respect to whom a de-
duction under section 151 is allowable to another 
taxpayer for a taxable year beginning in the cal-
endar year in which such individual’s taxable year 
begins, 
‘‘(2) any estate or trust, or 
‘‘(3) any nonresident alien individual.’’. 
(b) CONFORMING AMENDMENT.—Section 1324(b)(2) 
of title 31, United States Code, is amended by inserting 
before the period ‘‘, or enacted by the Windfall Profits 
Rebate Act of 2005’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 6430. Energy consumer rebate.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Æ