Sponsors (17)
Official title: Amend the Internal Revenue Code of 1986 to increase the excise tax for the repurchase of corporate stock by large oil and gas companies.
Introduced May 20, 2026 by Ronald Lee Wyden · Last progress May 20, 2026
The bill temporarily taxes or limits buybacks by large oil and gas firms tied to a gasoline-price trigger to raise federal revenue and encourage cash retention for investment or lower prices, but it risks higher consumer fuel costs, reduced returns for oil‑sector shareholders, and extra administrative burdens.
Taxpayers: Creates a temporary, targeted revenue source for the Treasury while gasoline prices remain above the trigger, increasing federal receipts from large oil and gas firms.
Energy workers, consumers, and taxpayers: By discouraging share buybacks, large oil and gas firms may retain cash for capital investment or reduce prices instead of returning cash to shareholders, which could support sector investment and put downward pressure on gasoline prices.
Investors/shareholders outside the targeted firms: Reduced buyback activity by large oil and gas firms may lessen buyback-driven stock-price pressure, which could slightly stabilize valuations across other companies.
Consumers and energy-sector employees: Large oil and gas companies may pass the higher tax onto consumers as higher fuel prices or cut investment and hiring, raising costs for consumers and risking job losses or slower hiring in the sector.
Shareholders of large oil & gas firms: Investors are likely to face reduced returns from fewer buybacks and possible lower per‑share valuations while the higher tax applies.
Federal agencies and affected corporations: The new definitions, allocation rules, and price‑trigger timing calculations increase tax compliance and administrative burden for the Treasury/IRS and for impacted companies.
Based on analysis of 2 sections of legislative text.
Raises the excise tax on stock buybacks by very large oil and gas companies from 1% to 25% until a gasoline price trigger is met.
Imposes a temporary higher excise tax on corporate stock repurchases by very large oil and gas companies. The repurchase excise rate for an "applicable corporation" (≥ $1 billion average annual gross receipts and primarily in oil or natural gas businesses) is raised from 1% to 25% for repurchases after enactment and until a gasoline-price trigger is met. The bill also includes rules to prorate the tax when a taxable year spans covered and non-covered periods and makes a technical renumbering change.