[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7099 Introduced in House (IH)]
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117th CONGRESS
2d Session
H. R. 7099
To amend the Internal Revenue Code of 1986 to establish a windfall
profits excise tax on crude oil and to rebate the tax collected back to
individual taxpayers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 16, 2022
Mr. DeFazio (for himself, Mr. Takano, Ms. Tlaib, Ms. Porter, Mr.
Carson, Mr. Cohen, Ms. Kaptur, Mr. Garcia of Illinois, Ms. Titus, Mr.
Jones, Ms. Ross, Mr. Grijalva, Mr. Welch, Mr. Malinowski, Ms. Jayapal,
Ms. Underwood, Ms. Pingree, and Ms. Barragan) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish a windfall
profits excise tax on crude oil and to rebate the tax collected back to
individual taxpayers, and for other purposes.
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 ``Stop Gas Price Gouging Tax and
Rebate Act''.
SEC. 2. WINDFALL PROFITS TAX.
(a) In General.--Subtitle E of the Internal Revenue Code of 1986
(relating to alcohol, tobacco, and certain other excise taxes) is
amended by adding at the end thereof the following new chapter:
``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL
``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit.
``Sec. 5898. Special rules and definitions.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed under this
title, there is hereby imposed on any applicable taxpayer an excise tax
in an amount equal to 50 percent of the excess of the windfall profit
(as defined in section 5897(a)) of such taxpayer.
``(b) Applicable Taxpayer.--For purposes of this chapter, the term
`applicable taxpayer' means, with respect to a taxable year, a producer
of crude oil--
``(1) which has an average daily worldwide production of
crude oil of at least 300,000 barrels for the taxable year, and
``(2) which had gross receipts in excess of $1,000,000,000
for its last taxable year ending during calendar year 2005.
For purposes of this subsection, all persons treated as a single
employer under subsections (a) and (b) of section 52 shall be treated
as 1 person and, in case of a short taxable year, the rule under
section 448(c)(3)(B) shall apply.
``SEC. 5897. WINDFALL PROFIT.
``(a) General Rule.--For purposes of this chapter, the term
`windfall profit' means the excess of the adjusted taxable income of
the applicable taxpayer for taxable year 2022 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
taxable year 2022 is equal to the taxable income for such taxable year
(within the meaning of section 63 and determined without regard to this
subsection)--
``(1) increased by any interest expense deduction,
charitable contribution deduction, and any net operating loss
deduction carried forward from any prior taxable year, and
``(2) reduced by any interest income, dividend income, and
net operating losses to the extent such losses exceed taxable
income for the 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 Tax.--The Secretary shall provide
such rules as are necessary for the withholding and deposit of the tax
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 Windfall Profit Tax.--The Secretary shall provide
for the filing and the time of such filing of the return of the tax
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
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
``Chapter 56. Windfall Profit on Crude Oil.''.
(c) Deductibility of Windfall Profit Tax.--The first sentence of
section 164(a) of the Internal Revenue Code of 1986 (relating to
deduction for taxes) is amended by inserting after paragraph (5) the
following new paragraph:
``(6) The windfall profit tax imposed by section 5896.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 3. ENERGY PRICE REBATES.
(a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 6433. ENERGY PRICE REBATES.
``(a) In General.--In the case of an eligible individual, there
shall be allowed as a credit against the tax imposed by subtitle A for
taxable year 2022 an amount equal to the sum of the energy price rebate
amount for each month beginning in such taxable year.
``(b) Energy Price Rebate Amount.--For purposes of this section--
``(1) In general.--The term `energy price rebate amount'
means, with respect to any taxpayer for any month beginning in
taxable year 2022, an amount determined by the Secretary as
soon as practicable after the end of such month taking into
account the number of eligible individuals and the amount of
revenues in the general fund resulting from the tax imposed by
section 5896 for such month.
``(2) Special rule for joint returns.--In the case of an
eligible individual filing a joint return, the energy price
rebate amount shall be 150 percent of the amount determined
under paragraph (1) with respect to other taxpayers.
``(3) Limitation based on adjusted gross income.--The
amount of the credit allowed by subsection (a) (determined
without regard to this subsection and subsection (e)) shall be
reduced (but not below zero) by 5 percent of so much of the
eligible individual's adjusted gross income as exceeds--
``(A) $150,000 in the case of a joint return,
``(B) $112,500 in the case of a head of household,
and
``(C) $75,000 in any other case.
``(c) Eligible Individual.--For purposes of this section, the term
`eligible individual' means any individual other than--
``(1) any nonresident alien individual,
``(2) any individual who is a dependent of another taxpayer
for a taxable year beginning in the calendar year in which the
individual's taxable year begins, and
``(3) an estate or trust.
``(d) Definitions and Special Rules.--
``(1) Dependent defined.--For purposes of this section, the
term `dependent' has the meaning given such term by section
152.
``(2) Identification number requirement.--
``(A) In general.--In the case of a return other
than a joint return, the energy price rebate amount in
subsection (b)(1) shall be treated as being zero unless
the taxpayer includes the valid identification number
of the taxpayer on the return of tax for the taxable
year.
``(B) Joint returns.--In the case of a joint
return, the energy price rebate amount in subsection
(b)(1) shall be treated as being--
``(i) 50 percent of the amount otherwise
determined without regard to this paragraph if
the valid identification number of only 1
spouse is included on the return of tax for the
taxable year, and
``(ii) zero if the valid identification
number of neither spouse is so included.
``(C) Valid identification number.--For purposes of
this paragraph, the term `valid identification number'
means a social security number issued to an individual
by the Social Security Administration on or before the
due date for filing the return for the taxable year.
``(D) Special rule for members of the armed
forces.--Subparagraph (B) shall not apply in the case
where at least 1 spouse was a member of the Armed
Forces of the United States at any time during the
taxable year and the valid identification number of at
least 1 spouse is included on the return of tax for the
taxable year.
``(E) Coordination with certain advance payments.--
In the case of any payment determined pursuant to
subsection (f)(6), a valid identification number shall
be treated for purposes of this paragraph as included
on the taxpayer's return of tax if such valid
identification number is available to the Secretary as
described in such subsection.
``(F) Mathematical or clerical error authority.--
Any omission of a correct valid identification number
required under this paragraph shall be treated as a
mathematical or clerical error for purposes of applying
section 6213(g)(2) to such omission.
``(3) Credit treated as refundable.--The credit allowed by
subsection (a) shall be treated as allowed by subpart C of part
IV of subchapter A of chapter 1.
``(e) Coordination With Advance Refunds of Credit.--
``(1) Reduction of refundable credit.--The amount of the
credit which would (but for this paragraph) be allowable under
subsection (a) for any taxable year shall be reduced (but not
below zero) by the aggregate refunds and credits made or
allowed to the taxpayer (or, except as otherwise provided by
the Secretary, any dependent of the taxpayer) under subsection
(f) for such taxable year. Any failure to so reduce the credit
shall be treated as arising out of a mathematical or clerical
error and assessed according to section 6213(b)(1).
``(2) Joint returns.--Except as otherwise provided by the
Secretary, in the case of a refund or credit made or allowed
under subsection (f) with respect to a joint return, half of
such refund or credit shall be treated as having been made or
allowed to each individual filing such return.
``(f) Advance Refunds and Credits.--
``(1) In general.--Subject to paragraphs (5) and (6), for
any rebate taxable year, each individual who was an eligible
individual for such individual's first taxable year beginning
in 2020 shall be treated as having made a payment against the
tax imposed by chapter 1 for such applicable taxable year in an
amount equal to advance refund amount for such rebate taxable
year.
``(2) Advance refund amount.--
``(A) In general.--For purposes of paragraph (1),
the advance refund amount is the amount that would have
been allowed as a credit under this section for such
taxable year if this section (other than subsection (e)
and this subsection) had applied to such taxable year.
``(B) Treatment of deceased individuals.--For
purposes of determining the advanced refund amount with
respect to such taxable year--
``(i) any individual who was deceased
before January 1, 2022 shall be treated for
purposes of applying subsection (d)(2) in the
same manner as if the valid identification
number of such person was not included on the
return of tax for the applicable taxable year
(except that subparagraph (D) thereof shall not
apply), and
``(ii) notwithstanding clause (i), in the
case of a joint return with respect to which
only 1 spouse is deceased before January 1,
2022, such deceased spouse was a member of the
Armed Forces of the United States at any time
during the applicable taxable year, and the
valid identification number of such deceased
spouse is included on the return of tax for the
applicable taxable year, the valid
identification number of 1 (and only 1) spouse
shall be treated as included on the return of
tax for the applicable taxable year for
purposes of applying subsection (d)(2)(B) with
respect to such joint return.
``(3) Timing and manner of payments.--The Secretary shall,
subject to the provisions of this title, refund or credit any
overpayment attributable to this section and determined with
respect to any month as rapidly as possible, consistent with a
rapid effort to make payments attributable to such overpayments
electronically if appropriate. No refund or credit shall be
made or allowed under this subsection after December 31, 2022.
``(4) No interest.--No interest shall be allowed on any
overpayment attributable to this subsection.
``(5) Application to individuals who have filed a return of
tax for 2021.--
``(A) Application to 2021 returns filed at time of
initial determination.--If, at the time of any
determination made pursuant to paragraph (3), the
individual referred to in paragraph (1) has filed a
return of tax for the individual's first taxable year
beginning in 2021, paragraph (1) shall be applied with
respect to such individual by substituting `2021' for
`2020'.
``(B) Additional payment.--
``(i) In general.--In the case of any
individual who files, before the additional
payment determination date, a return of tax for
such individual's first taxable year beginning
in 2021, the Secretary shall make a payment (in
addition to any payment made under paragraph
(1)) to such individual equal to the excess (if
any) of--
``(I) the amount which would be
determined under paragraph (1) (after
the application of subparagraph (A)) by
applying paragraph (1) as of the
additional payment determination date,
over
``(II) the amount of any payment
made with respect to such individual
under paragraph (1).
``(ii) Additional payment determination
date.--The term `additional payment
determination date' means the earlier of--
``(I) the date which is 90 days
after the 2021 calendar year filing
deadline, or
``(II) September 1, 2022.
``(6) Application to certain individuals who have not filed
a return of tax for 2020 or 2021 at the time of
determination.--In the case of any individual who, at the time
of any determination made pursuant to paragraph (3), has filed
a tax return for neither the year described in paragraph (1)
nor for the year described in paragraph (5)(A), the Secretary
shall, consistent with rules similar to the rules of section
6428A(f)(5)(H)(i), apply paragraph (1) on the basis of
information available to the Secretary and shall, on the basis
of such information, determine the advance refund amount with
respect to such individual without regard to subsection (d)
unless the Secretary has reason to know that such amount would
otherwise be reduced by reason of such subsection.
``(7) Special rule related to time of filing return.--
Solely for purposes of this subsection, a return of tax shall
not be treated as filed until such return has been processed by
the Internal Revenue Service.
``(g) Regulations.--The Secretary shall prescribe such regulations
or other guidance as may be necessary or appropriate to carry out the
purposes of this section, including--
``(1) regulations or other guidance providing taxpayers the
opportunity to provide the Secretary information sufficient to
allow the Secretary to make payments to such taxpayers under
subsection (f) (including the determination of the amount of
such payment) if such information is not otherwise available to
the Secretary, and
``(2) regulations or other guidance to ensure to the
maximum extent administratively practicable that, in
determining the amount of any credit under subsection (a) and
any credit or refund under subsection (f), an individual is not
taken into account more than once, including by different
taxpayers and including by reason of a change in joint return
status or dependent status between the taxable year for which
an advance refund amount is determined and the taxable year for
which a credit under subsection (a) is determined.
``(h) Outreach.--The Secretary shall carry out a robust and
comprehensive outreach program to ensure that all taxpayers described
in subsection (g)(1) learn of their eligibility for the advance refunds
and credits under subsection (f); are advised of the opportunity to
receive such advance refunds and credits as provided under subsection
(g)(1); and are provided assistance in applying for such advance
refunds and credits.''.
(b) Treatment of Certain Possessions.--
(1) Payments to possessions with mirror code tax systems.--
The Secretary of the Treasury shall pay to each possession of
the United States which has a mirror code tax system amounts
equal to the loss (if any) to that possession by reason of the
amendments made by this section. Such amounts shall be
determined by the Secretary of the Treasury based on
information provided by the government of the respective
possession.
(2) Payments to other possessions.--The Secretary of the
Treasury shall pay to each possession of the United States
which does not have a mirror code tax system amounts estimated
by the Secretary of the Treasury as being equal to the
aggregate benefits (if any) that would have been provided to
residents of such possession by reason of the amendments made
by this section if a mirror code tax system had been in effect
in such possession. The preceding sentence shall not apply
unless the respective possession has a plan, which has been
approved by the Secretary of the Treasury, under which such
possession will promptly distribute such payments to its
residents.
(3) Inclusion of administrative expenses.--The Secretary of
the Treasury shall pay to each possession of the United States
to which the Secretary makes a payment under paragraph (1) or
(2) an amount equal to the increase (if any) of the
administrative expenses of such possession--
(A) in the case of a possession described in
paragraph (1), by reason of the amendments made by this
section, and
(B) in the case of a possession described in
paragraph (2), by reason of carrying out the plan
described in such paragraph, or
The amount described in subparagraph (A) shall be determined by
the Secretary of the Treasury based on information provided by
the government of the respective possession.
(4) Coordination with credit allowed against united states
income taxes.--No credit shall be allowed against United States
income taxes under section 6433 of the Internal Revenue Code of
1986 (as added by this section), nor shall any credit or refund
be made or allowed under subsection (f) of such section, to any
person--
(A) to whom a credit is allowed against taxes
imposed by the possession by reason of the amendments
made by this section, or
(B) who is eligible for a payment under a plan
described in paragraph (2).
(5) Mirror code tax system.--For purposes of this
subsection, the term ``mirror code tax system'' means, with
respect to any possession of the United States, the income tax
system of such possession if the income tax liability of the
residents of such possession under such system is determined by
reference to the income tax laws of the United States as if
such possession were the United States.
(6) Treatment of payments.--For purposes of section 1324 of
title 31, United States Code, the payments under this
subsection shall be treated in the same manner as a refund due
from a credit provision referred to in subsection (b)(2) of
such section.
(c) Administrative Provisions.--
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the
Internal Revenue Code of 1986 is amended by striking ``6428A,
6428B'' and inserting ``6428A, 6428B, 6433,''.
(2) Exception from reduction or offset.--Any refund payable
by reason of section 6433(f) of the Internal Revenue Code of
1986 (as added by this section), or any such refund payable by
reason of subsection (b) of this section, shall not be--
(A) subject to reduction or offset pursuant to
subsection (c), (d), (e), or (f) of section 6402 of the
Internal Revenue Code of 1986 or any similar authority
permitting offset, or
(B) reduced or offset by other assessed Federal
taxes that would otherwise be subject to levy or
collection.
(3) Assignment of benefits.--
(A) In general.--The right of any person to any
applicable payment shall not be transferable or
assignable, at law or in equity, and no applicable
payment shall be subject to, execution, levy,
attachment, garnishment, or other legal process, or the
operation of any bankruptcy or insolvency law.
(B) Encoding of payments.--In the case of an
applicable payment described in subparagraph
(E)(iii)(I) that is paid electronically by direct
deposit through the Automated Clearing House (ACH)
network, the Secretary of the Treasury (or the
Secretary's delegate) shall--
(i) issue the payment using a unique
identifier that is reasonably sufficient to
allow a financial institution to identify the
payment as an applicable payment, and
(ii) further encode the payment pursuant to
the same specifications as required for a
benefit payment defined in section 212.3 of
title 31, Code of Federal Regulations.
(C) Garnishment.--
(i) Encoded payments.--In the case of a
garnishment order that applies to an account
that has received an applicable payment that is
encoded as provided in subparagraph (B), a
financial institution shall follow the
requirements and procedures set forth in part
212 of title 31, Code of Federal Regulations,
except--
(I) notwithstanding section 212.4
of title 31, Code of Federal
Regulations (and except as provided in
subclause (II)), a financial
institution shall not fail to follow
the procedures of sections 212.5 and
212.6 of such title with respect to a
garnishment order merely because such
order has attached, or includes, a
notice of right to garnish federal
benefits issued by a State child
support enforcement agency, and
(II) a financial institution shall
not, with regard to any applicable
payment, be required to provide the
notice referenced in sections 212.6 and
212.7 of title 31, Code of Federal
Regulations.
(ii) Other payments.--In the case of a
garnishment order (other than an order that has
been served by the United States) that has been
received by a financial institution and that
applies to an account into which an applicable
payment that has not been encoded as provided
in subparagraph (B) has been deposited
electronically on any date during the lookback
period or into which an applicable payment that
has been deposited by check on any date in the
lookback period, the financial institution,
upon the request of the account holder, shall
treat the amount of the funds in the account at
the time of the request, up to the amount of
the applicable payment (in addition to any
amounts otherwise protected under part 212 of
title 31, Code of Federal Regulations), as
exempt from a garnishment order without
requiring the consent of the party serving the
garnishment order or the judgment creditor.
(iii) Liability.--A financial institution
that acts in good faith in reliance on clauses
(i) or (ii) shall not be subject to liability
or regulatory action under any Federal or State
law, regulation, court or other order, or
regulatory interpretation for actions
concerning any applicable payments.
(D) No reclamation rights.--This paragraph shall
not alter the status of applicable payments as tax
refunds or other nonbenefit payments for purpose of any
reclamation rights of the Department of the Treasury or
the Internal Revenue Service as per part 210 of title
31, Code of Federal Regulations.
(E) Definitions.--For purposes of this paragraph--
(i) Account holder.--The term ``account
holder'' means a natural person whose name
appears in a financial institution's records as
the direct or beneficial owner of an account.
(ii) Account review.--The term ``account
review'' means the process of examining
deposits in an account to determine if an
applicable payment has been deposited into the
account during the lookback period. The
financial institution shall perform the account
review following the procedures outlined in
section 212.5 of title 31, Code of Federal
Regulations and in accordance with the
requirements of section 212.6 of title 31, Code
of Federal Regulations.
(iii) Applicable payment.--The term
``applicable payment'' means--
(I) any payment made to an
individual under this section (other
than any payment made pursuant to
paragraph (5)),
(II) any advance payment made by a
possession of the United States with a
mirror code tax system (as defined in
section 24(h)) pursuant to an election
under paragraph (5)(B) which
corresponds to a payment described in
subclause (I), and
(III) any advance payment made by
American Samoa pursuant to a program
for making such payments which is
described in paragraph (5)(C)(ii).
(iv) Garnishment.--The term ``garnishment''
means execution, levy, attachment, garnishment,
or other legal process.
(v) Garnishment order.--The term
``garnishment order'' means a writ, order,
notice, summons, judgment, levy, or similar
written instruction issued by a court, a State
or State agency, a municipality or municipal
corporation, or a State child support
enforcement agency, including a lien arising by
operation of law for overdue child support or
an order to freeze the assets in an account, to
effect a garnishment against a debtor.
(vi) Lookback period.--The term ``lookback
period'' means the two-month period that begins
on the date preceding the date of account
review and ends on the corresponding date of
the month two months earlier, or on the last
date of the month two months earlier if the
corresponding date does not exist.
(4) Conforming amendments.--
(A) Paragraph (2) of section 1324(b) of title 31,
United States Code, is amended by inserting ``6433,''
after ``6431,''.
(B) The table of sections for subchapter B of
chapter 65 of the Internal Revenue Code of 1986 is
amended by adding at the end the following new item:
``Sec. 6433. Energy price rebates.''.
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