I
106TH CONGRESS
2D SESSION
H. R. 4974
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
JULY 26, 2000
Mr. KUCINICH (for himself, Mr. BONIOR, Mr. VISCLOSKY, Ms. RIVERS, Ms.
MCKINNEY, Mr. SANDERS, Ms. MCCARTHY of Missouri, and Mr. FIL-
NER) introduced the following bill; which was referred to the Committee
on Ways and Means, and in addition to the Committee on Transportation
and Infrastructure, 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 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 2000’’.
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 
55—WINDFALL 
PROFIT 
ON
CRUDE OIL, NATURAL GAS, AND PROD-
UCTS THEREOF
‘‘Sec. 5886. Imposition of tax.
‘‘SEC. 5886. 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—
‘‘(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 55. Windfall profit on crude oil and refined petroleum
products.’’
(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 25A the following new
section:
‘‘SEC. 25B. 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.—The credit allowed by this
section for the taxable year shall not exceed—
‘‘(1) $2,000 in the case of a qualified passenger
vehicle not described in paragraph (2) or (3),
‘‘(2) $3,000 in the case of a qualified passenger
vehicle the fuel economy of which is—