I 
117TH CONGRESS 
2D SESSION 
H. R. 7099 
To amend the Internal Revenue Code of 1986 to establish a windfall profits 
excise tax on crude oil and to rebate the tax collected back to individual 
taxpayers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 16, 2022 
Mr. DEFAZIO (for himself, Mr. TAKANO, Ms. TLAIB, Ms. PORTER, Mr. CAR-
SON, Mr. COHEN, Ms. KAPTUR, Mr. GARCI´A of Illinois, Ms. TITUS, Mr. 
JONES, Ms. ROSS, Mr. GRIJALVA, Mr. WELCH, Mr. MALINOWSKI, Ms. 
JAYAPAL, Ms. UNDERWOOD, Ms. PINGREE, and Ms. BARRAGA´N) intro-
duced the following bill; which was referred to the Committee on Ways 
and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
a windfall profits excise tax on crude oil and to rebate 
the tax collected back to individual taxpayers, 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 ‘‘Stop Gas Price 
Gouging Tax and Rebate Act’’. 
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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 PROFITS ON 
CRUDE OIL 
‘‘Sec. 5896. Imposition of tax. 
‘‘Sec. 5897. Windfall profit. 
‘‘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 ap-
plicable taxpayer an excise tax in an amount equal to 50 
percent of the excess of the windfall profit (as defined in 
section 5897(a)) of such taxpayer. 
‘‘(b) APPLICABLE TAXPAYER.—For purposes of this 
chapter, the term ‘applicable taxpayer’ means, with re-
spect to a taxable year, a producer of crude oil— 
‘‘(1) which has an average daily worldwide pro-
duction of crude oil of at least 300,000 barrels for 
the taxable year, and 
‘‘(2) which had gross receipts in excess of 
$1,000,000,000 for its last taxable year ending dur-
ing calendar year 2005. 
For purposes of this subsection, all persons treated as a 
single employer under subsections (a) and (b) of section 
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52 shall be treated as 1 person and, in case of a short 
taxable year, the rule under section 448(c)(3)(B) shall 
apply. 
‘‘SEC. 5897. WINDFALL PROFIT. 
‘‘(a) GENERAL RULE.—For purposes of this chapter, 
the term ‘windfall profit’ means the excess of the adjusted 
taxable income of the applicable taxpayer for taxable year 
2022 over the reasonably inflated average profit for such 
taxable year. 
‘‘(b) ADJUSTED TAXABLE INCOME.—For purposes of 
this chapter, with respect to any applicable taxpayer, the 
adjusted taxable income for taxable year 2022 is equal to 
the taxable income for such taxable year (within the mean-
ing of section 63 and determined without regard to this 
subsection)— 
‘‘(1) increased by any interest expense deduc-
tion, charitable contribution deduction, and any net 
operating loss deduction carried forward from any 
prior taxable year, and 
‘‘(2) reduced by any interest income, dividend 
income, and net operating losses to the extent such 
losses exceed taxable income for the taxable year. 
In the case of any applicable taxpayer which is a foreign 
corporation, the adjusted taxable income shall be deter-
mined with respect to such income which is effectively con-
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nected with the conduct of a trade or business in the 
United States. 
‘‘(c) REASONABLY INFLATED AVERAGE PROFIT.— 
For purposes of this chapter, with respect to any applica-
ble taxpayer, the reasonably inflated average profit for any 
taxable year is an amount equal to the average of the ad-
justed taxable income of such taxpayer for taxable years 
beginning during the 2015–2019 taxable year period (de-
termined without regard to the taxable year with the high-
est adjusted taxable income in such period) plus 10 per-
cent of such average. 
‘‘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. 
‘‘(b) RECORDS AND INFORMATION.—Each taxpayer 
liable for tax under section 5896 shall keep such records, 
make such returns, and furnish such information 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) CRUDE OIL.—The term ‘crude oil’ includes 
crude oil condensates and natural gasoline. 
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‘‘(e) BUSINESSES UNDER COMMON CONTROL.—For 
purposes of this chapter, all members of the same con-
trolled group of corporations (within the meaning of sec-
tion 267(f)) and all persons under common control (within 
the meaning of section 52(b) but determined by treating 
an interest of more than 50 percent as a controlling inter-
est) shall be treated as 1 person. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this chapter.’’. 
(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.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
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