Stop Profiting Off Putin’s War Act
Bill: H.R.7103 | Sponsor: Rep. Maloney, Sean Patrick (D-NY)
Policy area: Taxation

Summary:
Stop Profiting Off Putin's War Act
This bill imposes a 50% excise tax through 2023 on the adjusted taxable income of certain major integrated oil companies during calendar quarters when the national average price of unleaded gasoline is equal to or greater than the national average price of unleaded gasoline on February 24, 2022, the day of the Russian invasion of Ukraine. The rate of such tax is increased to 75% for companies that raise prices in response to this new tax.
The bill requires tax revenues to be paid as rebates to eligible individuals and establishes the Gas Profit Recovery Fund to finance the payment of such rebates.

To amend the Internal Revenue Code of 1986 to establish an excise tax 
 on the profits of oil companies and distribute them as a dividend to 
                   taxpayers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Profiting Off Putin's War 
Act''.

SEC. 2. CRUDE OIL PROFIT TAX.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 
(relating to alcohol, tobacco, and certain other excise taxes) is 
amended by adding at the end thereof the following new chapter:

                   ``CHAPTER 56--PROFIT ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Applicable profit.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF TAX.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any applicable taxpayer an excise tax 
in an amount equal to 50 percent of the applicable profit of such 
taxpayer.
    ``(b) Applicable Taxpayer.--For purposes of this chapter, the term 
`applicable taxpayer' means any major integrated oil company (as 
defined in section 167(h)(5)(B), applied by substituting `$500,000,000' 
for `$1,000,000,000' in clause (ii) thereof).
    ``(c) Special Rule for Certain Price Hikes.--If the Secretary, 
after consultation with the Secretary of Energy and the Chair of the 
Federal Trade Commission, determines that an applicable taxpayer has 
raised prices as a result of the tax under subsection (a), such 
subsection shall be applied by substituting `75 percent' for `50 
percent'.
    ``(d) Termination.--No tax shall be imposed under this section 
after December 31, 2023.

``SEC. 5897. APPLICABLE PROFIT.

    ``(a) General Rule.--For purposes of this chapter, the term 
`applicable profit' means, with respect to a taxable year, the adjusted 
taxable income of the applicable taxpayer for any calendar quarter in 
which the national average price of unleaded gasoline is equal to or 
greater than the national average price of unleaded gasoline on 
February 24, 2022.
    ``(b) Adjusted Taxable Income.--For purposes of this chapter, with 
respect to any applicable taxpayer, the term `adjustable taxable 
income' means the taxable income of the taxpayer--
            ``(1) increased by--
                    ``(A) the amount of any bonuses to executive 
                officers, and
                    ``(B) the amount of any stock buybacks, and
            ``(2) reduced by--
                    ``(A) the amount of any net operating loss 
                deduction under section 172, and
                    ``(B) any deduction allowable for depreciation, 
                amortization, or depletion.
In the case of any applicable taxpayer which is a foreign corporation, 
the adjusted taxable income shall be determined with respect to such 
income which is effectively connected with the conduct of a trade or 
business in the United States.

``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 Applicable Profit Tax.--The Secretary 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.
    ``(e) Businesses Under Common Control.--For purposes of this 
chapter, all members of the same controlled group of corporations 
(within the meaning of section 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 interest) 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. Profit on Crude Oil.''.

    (c) Deductibility of Applicable Profit Tax.--The first sentence of 
section 164(a) of the Internal Revenue Code of 1986 (relating to 
deduction for taxes) is amended by inserting after paragraph (5) the 
following new paragraph:
            ``(6) The applicable 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.

SEC. 3. GASOLINE PRICE REBATES.

    (a) In General.--In the case of an eligible individual, there shall 
be allowed as a credit against the tax imposed by subtitle A for each 
taxable year beginning after the date of the enactment of the Stop 
Profiting Off Putin's War Act, an amount equal to the sum of the 
gasoline price rebate amount for calendar quarters beginning in such 
taxable year.
    (b) Gasoline Price Rebate Amount.--For purposes of this section--
            (1) In general.--The term ``gasoline price rebate amount'' 
        means, with respect to any taxpayer for any calendar quarter 
        beginning in a taxable year, an amount determined by the 
        Secretary not later than 30 days after the end of such calendar 
        quarter taking into account the number of eligible individuals 
        and the amount of revenues in the Gas Profit Recovery Fund 
        resulting from the tax imposed by section 5896 for the 
        preceding calendar quarter.
            (2) Special rule for joint returns.--In the case of an 
        eligible individual filing a joint return, the gasoline price 
        rebate amount shall be 150 percent of the amount determined 
        under paragraph (1) with respect to other taxpayers.
            (3) Limitation based on adjusted gross income.--The amount 
        of the credit allowed by subsection (a) (determined without 
        regard to this subsection and subsection (e)) shall be reduced 
        (but not below zero) by 5 percent of so much of the eligible 
        individual's adjusted gross income as exceeds--
                    (A) $200,000 in the case of a joint return,
                    (B) $150,000 in the case of a head of household, 
                and
                    (C) $100,000 in any other case.
    (c) Eligible Individual.--For purposes of this section, the term 
``eligible individual'' means any individual other than--
            (1) any nonresident alien individual,
            (2) any individual who is a dependent of another taxpayer 
        for a taxable year beginning in the calendar year in which the 
        individual's taxable year begins, and
            (3) an estate or trust.
    (d) Definitions and Special Rules.--
            (1) Dependent defined.--For purposes of this section, the 
        term ``dependent'' has the meaning given such term by section 
        152.
            (2) Identification number requirement.--
                    (A) In general.--In the case of a return other than 
                a joint return, the gasoline price rebate amount in 
                subsection (b)(1) shall be treated as being zero unless 
                the taxpayer includes the valid identification number 
                of the taxpayer on the return of tax for the taxable 
                year.
                    (B) Joint returns.--In the case of a joint return, 
                the gasoline price rebate amount in subsection (b)(1) 
                shall be treated as being--
                            (i) 50 percent of the amount otherwise 
                        determined without regard to this paragraph if 
                        the valid identification number of only 1 
                        spouse is included on the return of tax for the 
                        taxable year, and
                            (ii) zero if the valid identification 
                        number of neither spouse is so included.
                    (C) Valid identification number.--For purposes of 
                this paragraph, the term ``valid identification 
                number'' means a social security number issued to an 
                individual by the Social Security Administration on or 
                before the due date for filing the return for the 
                taxable year.
                    (D) Special rule for members of the armed forces.--
                Subparagraph (B) shall not apply in the case where at 
                least 1 spouse was a member of the Armed Forces of the 
                United States at any time during the taxable year and 
                the valid identification number of at least 1 spouse is 
                included on the return of tax for the taxable year.
                    (E) Coordination with certain advance payments.--In 
                the case of any payment determined pursuant to 
                subsection (f)(6), a valid identification number shall 
                be treated for purposes of this paragraph as included 
                on the taxpayer's return of tax if such valid 
                identification number is available to the Secretary as 
                described in such subsection.
                    (F) Mathematical or clerical error authority.--Any 
                omission of a correct valid identification number 
                required under this paragraph shall be treated as a 
                mathematical or clerical error for purposes of applying 
                section 6213(g)(2) to such omission.
            (3) Credit treated as refundable.--The credit allowed by 
        subsection (a) shall be treated as allowed by subpart C of part 
        IV of subchapter A of chapter 1.
    (e) Coordination With Advance Refunds of Credit.--
            (1) Reduction of refundable credit.--The amount of the 
        credit which would (but for this paragraph) be allowable under 
        subsection (a) for any taxable year shall be reduced (but not 
        below zero) by the aggregate refunds and credits made or 
        allowed to the taxpayer (or, except as otherwise provided by 
        the Secretary, any dependent of the taxpayer) under subsection 
        (f) for such taxable year. Any failure to so reduce the credit 
        shall be treated as arising out of a mathematical or clerical 
        error and assessed according to section 6213(b)(1).
            (2) Joint returns.--Except as otherwise provided by the 
        Secretary, in the case of a refund or credit made or allowed 
        under subsection (f) with respect to a joint return, half of 
        such refund or credit shall be treated as having been made or 
        allowed to each individual filing such return.
    (f) Advance Refunds and Credits.--
            (1) In general.--Subject to paragraphs (5) and (6), for any 
        rebate taxable year, each individual who was an eligible 
        individual for the applicable taxable year shall be treated as 
        having made a payment against the tax imposed by chapter 1 for 
        such applicable taxable year in an amount equal to advance 
        refund amount for such rebate taxable year.
            (2) Advance refund amount.--
                    (A) In general.--For purposes of paragraph (1), the 
                advance refund amount for any rebate taxable year is 
                the amount that would allowed as a credit under this 
                section for the applicable taxable year if this section 
                (other than subsection (e) and this subsection) were 
                applied to such applicable taxable year (without regard 
                to any effective date) using the gasoline price rebate 
                amount for the refund taxable year.
                    (B) Treatment of deceased individuals.--For 
                purposes of determining the advanced refund amount--
                            (i) any individual who was deceased before 
                        the first day of the rebate taxable year shall 
                        be treated for purposes of applying subsection 
                        (d)(2) in the same manner as if the valid 
                        identification number of such person was not 
                        included on the return of tax for the 
                        applicable taxable year (except that 
                        subparagraph (D) thereof shall not apply), and
                            (ii) notwithstanding clause (i), in the 
                        case of a joint return with respect to which 
                        only 1 spouse is deceased before the first day 
                        of the rebate taxable year, such deceased 
                        spouse was a member of the Armed Forces of the 
                        United States at any time during the applicable 
                        taxable year, and the valid identification 
                        number of such deceased spouse is included on 
                        the return of tax for the applicable taxable 
                        year, the valid identification number of 1 (and 
                        only 1) spouse shall be treated as included on 
                        the return of tax for the applicable taxable 
                        year for purposes of applying subsection 
                        (d)(2)(B) with respect to such joint return.
            (3) Timing and manner of payments.--The Secretary shall, 
        subject to the provisions of this title, refund or credit any 
        overpayment attributable to this section and determined with 
        respect to any calendar quarter not later than 90 days after 
        the end of such calendar quarter. No refund or credit shall be 
        made or allowed under this subsection after December 31, 2023.
            (4) No interest.--No interest shall be allowed on any 
        overpayment attributable to this subsection.
            (5) Application to individuals who have filed a return of 
        tax for the year after the applicable taxable year.--
                    (A) Application to returns filed at time of initial 
                determination.--If, at the time of any determination 
                made pursuant to paragraph (3), the individual referred 
                to in paragraph (1) has filed a return of tax for the 
                individual's first taxable year beginning after the 
                applicable taxable year, paragraph (1) shall be applied 
                with respect to such individual by substituting 
                ``taxable year following the applicable taxable year'' 
                for ``applicable taxable year''.
                    (B) Additional payment.--
                            (i) In general.--In the case of any 
                        individual who files, before the additional 
                        payment determination date, a return of tax for 
                        such individual's first taxable year beginning 
                        after the applicable taxable year, the 
                        Secretary shall make a payment (in addition to 
                        any payment made under paragraph (1)) to such 
                        individual equal to the excess (if any) of--
                                    (I) the amount which would be 
                                determined under paragraph (1) (after 
                                the application of subparagraph (A)) by 
                                applying paragraph (1) as of the 
                                additional payment determination date, 
                                over
                                    (II) the amount of any payment made 
                                with respect to such individual under 
                                paragraph (1).
                            (ii) Additional payment determination 
                        date.--The term ``additional payment 
                        determination date'' means the earlier of--
                                    (I) the date which is 90 days after 
                                the date specified in section 6072(a) 
                                with respect to returns for the taxable 
                                year following the applicable taxable 
                                year (determined after taking into 
                                account any period disregarded under 
                                section 7508A if such disregard applies 
                                to substantially all returns for such 
                                taxable year), or
                                    (II) September 1 of the calendar 
                                year following the applicable taxable 
                                year.
            (6) Application to certain individuals who have not filed a 
        return of tax for the preceding two years.--In the case of any 
        individual who, at the time of any determination made pursuant 
        to paragraph (3), has filed a tax return for neither the 
        applicable taxable year nor for the year following the 
        applicable taxable year, the Secretary shall, consistent with 
        rules similar to the rules of section 6428A(f)(5)(H)(i), apply 
        paragraph (1) on the basis of information available to the 
        Secretary and shall, on the basis of such information, 
        determine the advance refund amount with respect to such 
        individual without regard to subsection (b)(2) unless the 
        Secretary has reason to know that such amount would otherwise 
        be reduced by reason of such subsection.
            (7) Special rule related to time of filing return.--Solely 
        for purposes of this subsection, a return of tax shall not be 
        treated as filed until such return has been processed by the 
        Internal Revenue Service.
            (8) Applicable taxable year; rebate taxable year.--For 
        purposes of this subsection--
                    (A) Rebate taxable year.--The term ``rebate taxable 
                year'' means the taxable year for which a credit is 
                allowed under this section.
                    (B) Applicable taxable year.--The term ``applicable 
                taxable year'' means the second taxable year preceding 
                the rebate taxable year.
    (g) Regulations.--The Secretary shall prescribe such regulations or 
other guidance as may be necessary or appropriate to carry out the 
purposes of this section, including--
            (1) regulations or other guidance providing taxpayers the 
        opportunity to provide the Secretary information sufficient to 
        allow the Secretary to make payments to such taxpayers under 
        subsection (f) (including the determination of the amount of 
        such payment) if such information is not otherwise available to 
        the Secretary, and
            (2) regulations or other guidance to ensure to the maximum 
        extent administratively practicable that, in determining the 
        amount of any credit under subsection (a) and any credit or 
        refund under subsection (f), an individual is not taken into 
        account more than once, including by different taxpayers and 
        including by reason of a change in joint return status or 
        dependent status between the taxable year for which an advance 
        refund amount is determined and the taxable year for which a 
        credit under subsection (a) is determined.
    (h) Outreach.--The Secretary shall carry out a robust and 
comprehensive outreach program to ensure that all taxpayers described 
in subsection (g)(1) learn of their eligibility for the advance refunds 
and credits under subsection (f); are advised of the opportunity to 
receive such advance refunds and credits as provided under subsection 
(g)(1); and are provided assistance in applying for such advance 
refunds and credits.

SEC. 4. GAS PROFIT RECOVERY FUND.

    (a) In General.--Subchapter A of chapter 98 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9512. GAS PROFIT RECOVERY FUND.

    ``(a) Establishment and Funding.--There is hereby established in 
the Treasury of the United States a trust fund to be referred to as the 
`Gas Profit Recovery Fund', consisting of such amounts as may be 
appropriated or credited to such trust fund as provided for in this 
section and section 9602(b).
    ``(b) Transfers to the Gas Profit Recovery Fund.--There are hereby 
appropriated to the Gas Profit Recovery Fund amounts equivalent to the 
taxes received in the Treasury under section 5896.
    ``(c) Use of Funds.--The Secretary shall pay from time to time from 
the Gas Profit Recovery Fund to the general fund of the Treasury 
amounts equal to the amounts of refunds provided under section 6433.''.
    (b) Clerical Amendment.--The table of sections for subchapter A of 
chapter 98 of such Code is amended by adding at the end the following 
new item:

``Sec. 9512. Gas Profit Recovery Fund.''.
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