Big Oil Windfall Profits Tax Act
Sponsored By: Senator Sheldon Whitehouse
Introduced
Summary
Taxes windfall oil profits to fund gasoline rebates for households. The bill creates a per-barrel windfall tax tied to quarterly Brent crude prices and sets up a dedicated Treasury fund to pay refundable gasoline rebates to eligible individuals.
Show full summary
- Families and households: Provides refundable quarterly gasoline rebates based on fund revenue. Joint filers get 150% of the individual rebate and rebates phase down above $75,000 of adjusted gross income.
- Oil producers and importers: Imposes a per-barrel excise tax equal to 50% of the amount the quarter’s Brent price exceeds a 2025 baseline. The tax applies to crude and similar liquids and targets taxpayers averaging more than 300,000 barrels per day.
- Treasury, administration, and territories: Creates the Protect Consumers from Gas Price Hikes Fund to receive transfers equal to tax receipts and to finance refunds. The bill adds ID and filing rules, an Armed Forces exception, and payments to U.S. possessions, and takes effect for crude handled after December 31, 2025.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Quarterly gasoline rebates for households
If enacted, this would create a refundable gasoline-price rebate for tax years after December 31, 2025. The Treasury would set a quarterly per-person rebate within 30 days after each quarter, using windfall tax revenue and the number of eligible individuals. Joint filers would get 150% of the single-person amount. The credit would be reduced by 5% of AGI over $150,000 (joint), $112,500 (head of household), and $75,000 (other). Nonresident aliens, dependents, estates, and trusts would be excluded. Claimants would need a valid Social Security number by the return due date, with a special narrow rule for some military spouses.
New windfall oil tax for producers
If enacted, this would impose a quarterly excise tax on large crude oil producers and importers for crude removed or entered after December 31, 2025. The tax would apply only to 'covered taxpayers' that average over 300,000 barrels per day in 2025 or in a quarter. The per-barrel tax would equal 50% of the quarter's average Brent price above the 2025 baseline, and would be zero if the quarter average is at or below that baseline. For quarters after 2026 the 2025 baseline would be increased by a cost-of-living adjustment. The Treasury would write rules for withholding, deposits, reporting, and administration.
Sponsors & CoSponsors
Sponsor
Sheldon Whitehouse
RI • D
Cosponsors
Tammy Baldwin
WI • D
Sponsored 3/17/2026
Richard Blumenthal
CT • D
Sponsored 3/17/2026
Cory Booker
NJ • D
Sponsored 3/17/2026
Timothy Kaine
VA • D
Sponsored 3/17/2026
Edward Markey
MA • D
Sponsored 3/17/2026
Jeff Merkley
OR • D
Sponsored 3/17/2026
Christopher Murphy
CT • D
Sponsored 3/17/2026
John Reed
RI • D
Sponsored 3/17/2026
Bernie Sanders
VT • I
Sponsored 3/17/2026
Tina Smith
MN • D
Sponsored 3/17/2026
Elizabeth Warren
MA • D
Sponsored 3/17/2026
Mazie Hirono
HI • D
Sponsored 3/18/2026
Roll Call Votes
No roll call votes available for this bill.
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