Sponsors (14)
Official title: 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 Sheldon Whitehouse · Last progress March 17, 2026
The bill redirects windfall oil profits into a transparent trust to fund quarterly refundable gasoline relief for low- and middle-income households, trading clearer, targeted consumer relief and revenue for increased tax complexity, administrative costs, potential exclusions, and the risk that taxes are passed through into higher fuel prices or that fund volatility reduces or delays payments.
Low- and middle-income households (including those with little or no income tax liability and joint filers who get a larger payment) receive quarterly refundable payments to help offset gasoline price increases, with Treasury outreach to help people claim them.
A windfall profits tax on crude oil directs additional federal revenue from high oil prices toward public purposes, redistributing extraordinary producer gains during price spikes.
Creates a dedicated Treasury trust account and specifies a funding source for the gas-related refunds, increasing transparency and traceability of collections and disbursements.
Producers and refiners face a new windfall profits tax that may be passed through to consumers, risking higher fuel and energy prices that would disproportionately burden low-income households and small businesses.
The rebates and refunds depend on receipts to a specified fund and on diverted tax receipts, creating a risk that variable collections or diversion to the trust could reduce amounts available for the general Treasury or make payments small, variable, or delayed.
New tax rules, quarterly determinations, territory payment arrangements, and additional compliance create administrative burdens and costs for companies, the IRS/Treasury, state/territory governments, and ultimately taxpayers.
Based on analysis of 8 sections of legislative text.
Imposes a windfall profits tax on crude oil and directs proceeds to a Treasury fund that pays refundable quarterly gasoline rebate credits to eligible individuals.
Imposes a new federal "windfall profits" tax on crude oil removed or entered after December 31, 2025, and directs revenues from that tax into a Treasury trust fund used to pay refundable gasoline price rebate credits to eligible individual taxpayers. The gasoline rebate credit is calculated quarterly, may be increased for joint filers, phases down at higher incomes, and requires valid Social Security numbers for most claimants. Revenues from the new tax are transferred into the Protect Consumers from Gas Price Hikes Fund and used to reimburse the general fund for the refundable rebates.