Sponsors (25)
The bill funds quarterly cash rebates for low‑ and middle‑income households by imposing a windfall profits tax and dedicating related revenues—providing targeted relief to many but risking higher fuel prices, administrative burdens, and exclusions for some eligible households.
Low- and middle-income taxpayers receive quarterly refundable rebates that lower their net tax burden and provide direct cash help to offset rising gasoline costs.
Joint filers (many married couples) and residents of U.S. territories receive enhanced or parity treatment in rebate payments, helping families with combined fuel costs and territorial residents who otherwise might lose out.
Active-duty service members filing jointly with at least one SSN are protected from the joint‑return SSN penalty, preserving full rebate access for many military families.
Oil owners and producers face a new windfall profits tax that will raise their tax costs and may be passed through into higher gasoline and heating prices for consumers.
Creating a new Subtitle E chapter and a dedicated trust fund increases compliance and administrative burdens for the Treasury/IRS and for affected companies, raising costs and implementation complexity.
Rebate eligibility rules (phasedown for higher AGI, exclusions for nonresident aliens, dependents, estates, trusts) plus the SSN requirement will reduce or block payments for some households—particularly mixed‑status families and people without SSNs.
Based on analysis of 4 sections of legislative text.
Imposes a windfall profits tax on crude oil and uses revenues to fund refundable quarterly gasoline rebates for eligible individuals.
Official title: To amend the Internal Revenue Code of 1986 to impose a windfall profits excise tax on crude oil and to rebate the tax collected back to individual taxpayers, and for other purposes.
Introduced March 17, 2026 by Ro Khanna · Last progress March 17, 2026
Creates a new federal tax on windfall profits from crude oil and directs those revenues into a Treasury trust fund that finances refundable quarterly gasoline price rebates for eligible individuals. The tax and rebate provisions take effect for crude and tax years beginning after December 31, 2025, with special timing rules for early quarters in 2026.