Sponsors (13)
The bill raises revenue through a windfall profits tax and creates refundable quarterly gasoline rebates that provide direct relief to low- and middle-income households, but it increases fiscal outlays and administrative complexity while risking higher fuel costs and uneven access for territories and some immigrants.
Low- and middle-income households will receive refundable quarterly gasoline rebates beginning in 2026 (with larger payments for joint filers and direct payments to those with little or no tax liability); Treasury outreach and rules are required and funding coordination for U.S. possessions is provided to help deliver payments.
Domestic taxpayers benefit from additional federal revenue raised by a windfall profits tax on crude oil that can be used to fund public services, refunds, or deficit reduction.
A dedicated mechanism (trust fund) channels gas-tax receipts to cover related refunds, improving transparency and reducing the risk of unpaid or delayed refunds to eligible taxpayers and entities.
Crude oil producers and importers face higher tax burdens from the windfall profits tax, which is likely to contribute to higher fuel prices for consumers and could reduce industry investment or cause layoffs in the energy sector.
The refundable rebate program and partial payments to some higher-income households (phased reductions up to $150,000 joint) increase federal outlays and could raise the deficit or crowd out other spending unless offset.
The bill creates new compliance and administrative responsibilities across the IRS, Treasury, federal employees, and affected companies (including trust fund management and quarterly determinations), increasing administrative costs and the risk of payment delays.
Based on analysis of 8 sections of legislative text.
Introduced March 17, 2026 by Sheldon Whitehouse · Last progress March 17, 2026
Imposes a new "windfall profits" tax on crude oil removed or entered after December 31, 2025 and uses the revenues to fund a refundable gasoline price rebate for eligible individuals. The rebate is calculated quarterly from Fund revenues, is refundable, phased down for higher incomes, gives joint filers 150% of the base amount, and includes detailed rules for Social Security numbers and payments to U.S. possessions.