Federal Gas Tax Suspension and Windfall Profits Tax Act of 2022
Bill: H.R.7926 | Sponsor: Rep. Schiff, Adam B. (D-CA)
Policy area: Taxation

Summary:
Federal Gas Tax Suspension and Windfall Profits Tax Act of 2022
This bill suspends the excise tax on gasoline (other than aviation gasoline) until December 31, 2023. It also imposes a 50% tax on the excess profits of certain large oil companies in the first taxable year after 2021.

To amend the Internal Revenue Code of 1986 to provide for a suspension 
  of the highway fuel tax and to impose a temporary fee on excess oil 
                                profits.

    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 ``Federal Gas Tax Suspension and 
Windfall Profits Tax Act of 2022''.

SEC. 2. HIGHWAY FUEL TAX SUSPENSION.

    (a) Temporary Suspension of Highway Fuel Taxes on Gasoline.--
            (1) In general.--Section 4081 of the Internal Revenue Code 
        of 1986 is amended by adding at the end the following new 
        subsection:
    ``(f) Temporary Suspension of Taxes on Gasoline.--
            ``(1) In general.--During the applicable period, the rate 
        of tax otherwise applicable to gasoline under subsection 
        (a)(2)(A)(i), determined with regard to subsection (a)(2)(B), 
        shall be reduced to zero cents per gallon.
            ``(2) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the period beginning on the 
        date of the enactment of this subsection and ending on December 
        31, 2023.
            ``(3) Maintenance of trust fund deposits.--In determining 
        the amounts to be appropriated to the Highway Trust Fund under 
        section 9503 and to the Leaking Underground Storage Tank Trust 
        Fund under 9508, an amount equal to the reduction in revenues 
        to the Treasury by reason of this subsection shall be treated 
        as taxes received in the Treasury under this section or section 
        4041.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on the date of the enactment of this Act.
    (b) Floor Stock Refunds.--
            (1) In general.--If--
                    (A) before the tax suspension date, a tax referred 
                to in section 4081(f)(2) of the Internal Revenue Code 
                of 1986 has been imposed under such Code on any liquid, 
                and
                    (B) on such date such liquid is held by a dealer 
                and has not been used and is intended for sale,
        there shall be credited or refunded (without interest) to the 
        person who paid such tax (hereafter in this subsection referred 
        to as the ``taxpayer''), against the taxpayer's subsequent 
        semi-monthly deposit of such tax, an amount equal to the excess 
        of the tax paid by the taxpayer over the amount of such tax 
        which would be imposed on such liquid had the taxable event 
        occurred on the tax suspension date.
            (2) Time for filing claims; certifications necessary to 
        file claims.--
                    (A) In general.--No credit or refund shall be 
                allowed or made under this subsection--
                            (i) unless claim therefore is filed with 
                        the Secretary before the date which is 6 months 
                        after the tax suspension date, and
                            (ii) in any case where liquid is held by a 
                        dealer (other than the taxpayer) on the tax 
                        suspension date, unless the taxpayer files with 
                        the Secretary--
                                    (I) a certification that the 
                                taxpayer has given a credit to such 
                                dealer with respect to such liquid 
                                against the dealer's first purchase of 
                                liquid from the taxpayer subsequent to 
                                the tax suspension date, and
                                    (II) a certification by such dealer 
                                that such dealer has given a credit to 
                                a succeeding dealer (if any) with 
                                respect to such liquid against the 
                                succeeding dealer's first purchase of 
                                liquid from such dealer subsequent to 
                                the tax suspension date.
                    (B) Reasonableness of claims certified.--Any 
                certification made under subparagraph (A) shall include 
                an additional certification that the claim for credit 
                was reasonably based on the taxpayer's or dealer's past 
                business relationship with the succeeding dealer.
            (3) Definitions.--For purposes of this subsection--
                    (A) the terms ``dealer'' and ``held by a dealer'' 
                have the respective meanings given to such terms by 
                section 6412 of such Code; except that the term 
                ``dealer'' includes a producer, and
                    (B) the term ``tax suspension date'' means the date 
                of the enactment of this Act.
            (4) Certain rules to apply.--Rules similar to the rules of 
        subsections (b) and (c) of section 6412 of such Code shall 
        apply for purposes of this subsection.
    (c) Floor Stocks Tax.--
            (1) Imposition of tax.--In the case of any liquid on which 
        tax would have been imposed under section 4081 of the Internal 
        Revenue Code of 1986 during the applicable period but for the 
        amendment made by subsection (a), and which is held on the 
        floor stocks tax date by any person, there is hereby imposed a 
        floor stocks tax in an amount equal to the tax which would be 
        imposed on such liquid had the taxable event occurred on the 
        floor stocks tax date.
            (2) Liability for tax and method of payment.--
                    (A) Liability for tax.--A person holding a liquid 
                on the floor stocks tax date to which the tax imposed 
                by paragraph (1) applies shall be liable for such tax.
                    (B) Method of payment.--The tax imposed by 
                paragraph (1) shall be paid in such manner as the 
                Secretary shall prescribe.
                    (C) Time for payment.--The tax imposed by paragraph 
                (1) shall be paid on or before the date which is 6 
                months after the floor stocks tax date.
            (3) Definitions.--For purposes of this subsection--
                    (A) Held by a person.--A liquid shall be considered 
                as ``held by a person'' if title thereto has passed to 
                such person (whether or not delivery to the person has 
                been made).
                    (B) Gasoline.--The term ``gasoline'' has the 
                respective meaning given such term by section 4083 of 
                such Code.
                    (C) Floor stocks tax date.--The term ``floor stocks 
                tax date'' means January 1, 2024.
                    (D) Applicable period.--The term ``applicable 
                period'' means the period described in section 
                4081(f)(3) of such Code.
            (4) Exception for exempt uses.--The tax imposed by 
        paragraph (1) shall not apply to gasoline held by any person 
        exclusively for any use to the extent a credit or refund of the 
        tax imposed by section 4081 of such Code is allowable for such 
        use.
            (5) Exception for fuel held in vehicle tank.--No tax shall 
        be imposed by paragraph (1) on gasoline held in the tank of a 
        motor vehicle.
            (6) Exception for certain amounts of fuel.--
                    (A) In general.--No tax shall be imposed by 
                paragraph (1) on gasoline (other than aviation 
                gasoline) held on the floor stocks tax date by any 
                person if the aggregate amount of gasoline held by such 
                person on such date does not exceed 4,000 gallons. The 
                preceding sentence shall apply only if such person 
                submits to the Secretary (at the time and in the manner 
                required by the Secretary) such information as the 
                Secretary shall require for purposes of this 
                subparagraph.
                    (B) Exempt fuel.--For purposes of subparagraph (A), 
                there shall not be taken into account fuel held by any 
                person which is exempt from the tax imposed by 
                paragraph (1) by reason of paragraph (4) or (5).
                    (C) Controlled groups.--For purposes of this 
                paragraph--
                            (i) Corporations.--
                                    (I) In general.--All persons 
                                treated as a controlled group shall be 
                                treated as 1 person.
                                    (II) Controlled group.--The term 
                                ``controlled group'' has the meaning 
                                given to such term by subsection (a) of 
                                section 1563 of such Code; except that 
                                for such purposes the phrase ``more 
                                than 50 percent'' shall be substituted 
                                for the phrase ``at least 80 percent'' 
                                each place it appears in such 
                                subsection.
                            (ii) Nonincorporated persons under common 
                        control.--Under regulations prescribed by the 
                        Secretary, principles similar to the principles 
                        of clause (i) shall apply to a group of persons 
                        under common control where 1 or more of such 
                        persons is not a corporation.
            (7) Other law applicable.--All provisions of law, including 
        penalties, applicable with respect to the taxes imposed by 
        section 4081 of such Code shall, insofar as applicable and not 
        inconsistent with the provisions of this paragraph, apply with 
        respect to the floor stock taxes imposed by paragraph (1) to 
        the same extent as if such taxes were imposed by such section 
        4081.
    (d) Secretary.--For purposes of this section, the term 
``Secretary'' means the Secretary of the Treasury or the Secretary's 
delegate.
    (e) Sense of Congress.--It is the senses of Congress that--
            (1) consumers immediately receive the benefit of the 
        reduction in taxes resulting from the amendment made by 
        subsection (a), and
            (2) transportation motor fuels producers and other dealers 
        take such actions as necessary to reduce transportation motor 
        fuels prices to reflect such reduction, including immediate 
        credits to customer accounts representing tax refunds allowed 
        as credits against excise tax deposit payments under the floor 
        stocks refund provisions of subsection (b).

SEC. 3. TEMPORARY OIL PROFIT FEE.

    (a) In General.--Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end thereof the following new chapter:

            ``CHAPTER 56--TEMPORARY FEE ON EXCESS OIL PROFIT

``Sec. 5896. Imposition of fee.
``Sec. 5897. Excess profit; etc.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF FEE.

    ``(a) In General.--In addition to any other tax imposed under this 
title, there is hereby imposed on any applicable taxpayer an excise fee 
in an amount equal to 50 percent of the excess profit of such taxpayer 
for such taxpayer's first taxable year beginning after December 31, 
2021.
    ``(b) Applicable Taxpayer.--For purposes of this chapter, the term 
`applicable taxpayer' means any integrated oil company (as defined in 
section 291(b)(4)).

``SEC. 5897. EXCESS PROFIT; ETC.

    ``(a) General Rule.--For purposes of this chapter, the term `excess 
profit' means the excess of the adjusted taxable income of the 
applicable taxpayer for the taxable year 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 any 
taxable year is equal to the taxable income for such taxable year 
(within the meaning of section 63 and determined without regard to this 
subsection) increased by any interest expense deduction, charitable 
contribution deduction, and any net operating loss deduction carried 
forward from any prior taxable year. 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.
    ``(c) Reasonably Inflated Average Profit.--For purposes of this 
chapter, with respect to any applicable taxpayer, the reasonably 
inflated average profit for any taxable year is an amount equal to the 
average of the adjusted taxable income of such taxpayer for taxable 
years beginning during the 2015-2019 taxable year period (determined 
without regard to the taxable year with the highest adjusted taxable 
income in such period) plus 10 percent of such average.

``SEC. 5898. SPECIAL RULES AND DEFINITIONS.

    ``(a) Withholding and Deposit of Fee.--The Secretary shall provide 
such rules as are necessary for the withholding and deposit of the fee 
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 Fee.--The Secretary shall provide for the filing 
and the time of such filing of the return of the fee 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 
such Code is amended by adding at the end the following new item:

          ``Chapter 56--Temporary Fee on Excess Oil Profit''.

    (c) Deductibility of Fee.--The first sentence of section 164(a) of 
such Code is amended by inserting after paragraph (4) the following new 
paragraph:
            ``(5) The fee imposed by section 5896.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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