[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3802 Introduced in Senate (IS)]
<DOC>
117th CONGRESS
2d Session
S. 3802
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 10 (legislative day, March 7), 2022
Mr. Whitehouse (for himself, Mr. Merkley, Ms. Warren, Mr. Sanders, Ms.
Baldwin, Mr. Brown, Mr. Markey, Mr. Booker, Mr. Casey, Mr. Blumenthal,
Mr. Bennet, and Mr. Reed) introduced the following bill; which was read
twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
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.
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 ``Big Oil Windfall Profits Tax Act''.
SEC. 2. WINDFALL PROFITS TAX.
(a) In General.--Subtitle E of the Internal Revenue Code of 1986 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. Definitions and special rules.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed under this
title, in each calendar quarter there is hereby imposed on any covered
taxpayer an excise tax at the rate determined under subsection (b) on--
``(1) each barrel of taxable crude oil extracted by the
taxpayer within the United States and removed from the property
of such taxpayer during the calendar quarter, and
``(2) each barrel of taxable crude oil entered into the
United States during the calendar quarter by the taxpayer for
consumption, use, or warehousing.
``(b) Rate of Tax.--
``(1) In general.--The rate of tax imposed by this section
on any barrel of taxable crude oil for any calendar quarter is
the product of--
``(A) 50 percent, and
``(B) the excess (if any) of--
``(i) the average price of a barrel of
Brent crude oil over the covered calendar
quarter, over
``(ii) the average price of a barrel of
Brent crude oil over the period beginning on
January 1, 2015, and ending on December 31,
2019.
``(2) Inflation adjustment.--
``(A) In general.--In the case of a calendar
quarter beginning in any taxable year beginning after
2022, the amount determined under paragraph (1)(B)(ii)
shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year in which the taxable year begins,
determined by substituting `2021' for `2016' in
subparagraph (A)(ii) thereof.
``(B) Rounding.--If any dollar amount, after being
increased under subparagraph (A), is not a multiple of
$0.50, such dollar amount shall be rounded to the next
lowest multiple of $0.01.
``(c) Fractional Part of Barrel.--In the case of a fraction of a
barrel, the tax imposed by subsection (a) shall be the same fraction of
the amount of such tax imposed on the whole barrel.
``SEC. 5897. DEFINITIONS AND SPECIAL RULES.
``(a) Definitions.--For purposes of this chapter
``(1) Covered taxpayer.--
``(A) In general.--The term `covered taxpayer'
means, with respect to any calendar quarter, any
taxpayer if--
``(i) the average daily number of barrels
of taxable crude oil extracted and imported by
the taxpayer for calendar year 2019 exceeded
300,000 barrels, or
``(ii) the average daily number of barrels
of taxable crude oil extracted and imported by
the taxpayer for the calendar quarter exceeds
300,000.
``(B) Aggregation rules.--All persons treated as a
single employer under subsection (a) or (b) of section
52 or subsection (m) or (o) of section 414 shall be
treated as one person for purposes of paragraph (1).
``(2) Taxable crude oil.--The term `taxable crude oil'
includes crude oil, crude oil condensates, and natural
gasoline.
``(3) Barrel.--The term `barrel' means 42 United States
gallons.
``(4) United states.--The term `United States' has the same
meaning given such term under section 4612.
``(b) 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 on any taxable crude oil.
``(c) Records and Information.--Each taxpayer liable for tax under
section 5896 shall keep such records, make such returns, and furnish
such information (to the Secretary and to other persons having an
interest in the taxable crude oil) with respect to such oil as the
Secretary may by regulations prescribe.
``(d) 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.
``(e) 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 Profits on Crude Oil.''.
(c) Effective Date.--The amendments made by this section shall
apply to crude oil removed or entered after the date of the enactment
of this Act, in calendar quarters ending after such date.
SEC. 3. GASOLINE 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. GASOLINE 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
each taxable year beginning after the date of the enactment of the Big
Oil Windfall Profits Tax Act, an amount equal to the sum of the
gasoline price rebate amount for calendar quarters beginning in such
taxable year.
``(b) Gasoline Price Rebate Amount.--For purposes of this section--
``(1) In general.--The term `gasoline price rebate amount'
means, with respect to any taxpayer for any calendar quarter
beginning in a taxable year, an amount determined by the
Secretary not later than 30 days after the end of such calendar
quarter taking into account the number of eligible individuals
and the amount of revenues in the Protect Consumers from Gas
Hikes Fund resulting from the tax imposed by section 5896 for
the preceding calendar quarter.
``(2) Special rule for joint returns.--In the case of an
eligible individual filing a joint return, the gasoline 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 gasoline 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 gasoline 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 the applicable taxable year 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 for any rebate taxable year
is the amount that would be allowed as a credit under
this section for the applicable taxable year if this
section (other than subsection (e) and this subsection)
were applied to such applicable taxable year (without
regard to any effective date) using the gasoline price
rebate amount for the refund taxable year.
``(B) Treatment of deceased individuals.--For
purposes of determining the advanced refund amount--
``(i) any individual who was deceased
before the first day of the rebate taxable year
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 the first day
of the rebate taxable year, 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 calendar quarter not later than 90 days after
the end of such calendar quarter. No refund or credit shall be
made or allowed under this subsection with respect to any
applicable taxable year after the last day of the rebate
taxable year.
``(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 the year after the applicable taxable year.--
``(A) Application to 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 after the applicable taxable year, paragraph
(1) shall be applied with respect to such individual by
substituting `taxable year following the applicable
taxable year' for `applicable taxable year'.
``(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
after the applicable taxable year, 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 date specified in section
6072(a) with respect to returns for the
taxable year following the applicable
taxable year (determined after taking
into account any period disregarded
under section 7508A if such disregard
applies to substantially all returns
for such taxable year), or
``(II) September 1 of the calendar
year following the applicable taxable
year.
``(6) Application to certain individuals who have not filed
a return of tax for the preceding two years.--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 applicable taxable year nor for the year following the
applicable taxable year, 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 (b)(2) 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.
``(8) Applicable taxable year; rebate taxable year.--For
purposes of this subsection--
``(A) Rebate taxable year.--The term `rebate
taxable year' means the taxable year for which a credit
is allowed under this section.
``(B) Applicable taxable year.--The term
`applicable taxable year' means the second taxable year
preceding the rebate taxable year.
``(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) 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. Gasoline price rebates.''.
SEC. 4. PROTECT CONSUMERS FROM GAS PRICE HIKES FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9512. PROTECT CONSUMERS FROM GAS PRICE HIKES FUND.
``(a) Establishment and Funding.--There is hereby established in
the Treasury of the United States a trust fund to be referred to as the
`Protect Consumers from Gas Hikes Fund', consisting of such amounts as
may be appropriated or credited to such trust fund as provided for in
this section and section 9602(b).
``(b) Transfers to the Protect Consumers From Gas Price Hikes
Fund.--There are hereby appropriated to the Protect Consumers from Gas
Hikes Fund amounts equivalent to the taxes received in the Treasury
under section 5896.
``(c) Use of Funds.--The Secretary shall pay from time to time from
the Protect Consumers from Gas Price Hikes Fund to the general fund of
the Treasury amounts equal to the amounts of refunds provided under
section 6433.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of such Code is amended by adding at the end the following
new item:
``Sec. 9512. Protect Consumers from Gas Price Hikes Fund.''.
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