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119-hr-7960119th CongressWALLET
Big Oil Windfall Profits Tax Act
Sponsored By: Representative Khanna, Ro [D-CA-17]
Introduced
Summary
A quarterly windfall tax on crude oil paired with refundable gasoline rebates. The bill would tax large domestic producers and importers when Brent crude prices exceed a 2025 baseline and use those receipts to fund quarterly consumer rebates through a new Treasury trust fund.
Show full summary
- Large oil producers and importers: Entities that averaged more than 300,000 barrels per day would face a quarterly windfall profits tax. The rate would be 50% of the dollar gap between the quarter's average Brent price and the 2025 average, adjusted for inflation.
- Households and drivers: Eligible individuals would receive a refundable Gasoline Price Rebate claimed on individual tax returns. The Treasury would set quarterly rebate amounts from fund receipts, joint filers get 150% of a single filer’s rebate, and the credit phases out starting at $150,000 AGI for joint returns.
- Treasury and tax administration: The bill would create the Protect Consumers from Gas Price Hikes Fund to hold windfall receipts and pay refunds, add a new Chapter 56 to the tax code, and impose new withholding, reporting, and recordkeeping rules tied to quarters after December 31, 2025.
*Net effect: would raise federal revenues in quarters when Brent prices exceed the 2025 baseline and direct those receipts into a Treasury trust fund to finance quarterly gasoline rebates.*
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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 quarterly gasoline rebate for eligible individuals starting in calendar quarters beginning after December 31, 2025. The Treasury Secretary would set the per-person rebate within 30 days after each quarter using the Protect Consumers from Gas Price Hikes Fund receipts from the windfall oil tax and the number of eligible people from the prior quarter. Joint filers would receive 150% of the single-person amount. The credit would be refundable, paid through the tax system, and would be reduced by 5% of the part of your adjusted gross income over $150,000 (joint), $112,500 (head of household), or $75,000 (other). You would need a valid Social Security Number on your return to get a full rebate; nonresident aliens, dependents, and estates or trusts would be excluded. Treasury and IRS would run outreach and guidance, and the bill would set rules so U.S. possessions get comparable payments.
New windfall tax on big oil
If enacted, this would impose a quarterly windfall profits tax on "covered taxpayers" for each taxable barrel extracted in the United States or entered into the United States after December 31, 2025. The per-barrel tax rate would equal 50% of the amount the quarter's average Brent crude price is above the 2025 average Brent price. After 2026 the 2025 baseline would be adjusted for inflation. A taxpayer would be covered only if their average daily barrels (extracted plus imported) exceeded 300,000 barrels per day (using either a 2025 annual average or the quarter average). The bill sets rules for withholding, reporting, rounding, fractional barrels, and a transitional delayed payment date for some early 2026 quarters.
Sponsors & CoSponsors
Sponsor
Khanna, Ro [D-CA-17]
CA • D
Cosponsors
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 3/17/2026
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 3/17/2026
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 3/18/2026
Rep. Quigley, Mike [D-IL-5]
IL • D
Sponsored 3/26/2026
Rep. Amo, Gabe [D-RI-1]
RI • D
Sponsored 4/16/2026
Rep. Green, Al [D-TX-9]
TX • D
Sponsored 4/30/2026
Rep. Huffman, Jared [D-CA-2]
CA • D
Sponsored 5/12/2026
Rep. Pingree, Chellie [D-ME-1]
ME • D
Sponsored 5/14/2026
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 5/19/2026
Rep. Grijalva, Adelita S. [D-AZ-7]
AZ • D
Sponsored 6/2/2026
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 6/2/2026
Rep. Sherman, Brad [D-CA-32]
CA • D
Sponsored 6/3/2026
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 6/4/2026
Rep. McGovern, James P. [D-MA-2]
MA • D
Sponsored 6/8/2026
Rep. Cohen, Steve [D-TN-9]
TN • D
Sponsored 6/10/2026
Rep. Lofgren, Zoe [D-CA-18]
CA • D
Sponsored 6/15/2026
Rep. Pocan, Mark [D-WI-2]
WI • D
Sponsored 6/18/2026
Rep. Balint, Becca [D-VT-At Large]
VT • D
Sponsored 6/18/2026
Rep. Schakowsky, Janice D. [D-IL-9]
IL • D
Sponsored 6/23/2026
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 7/2/2026
Rep. Mejia, Analilia [D-NJ-11]
NJ • D
Sponsored 7/2/2026
Rep. Simon, Lateefah [D-CA-12]
CA • D
Sponsored 7/13/2026
Rep. McCollum, Betty [D-MN-4]
MN • D
Sponsored 7/13/2026
Rep. Bonamici, Suzanne [D-OR-1]
OR • D
Sponsored 7/15/2026
Rep. Ansari, Yassamin [D-AZ-3]
AZ • D
Sponsored 7/22/2026
Rep. Frost, Maxwell [D-FL-10]
FL • D
Sponsored 8/31/2026
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 9/14/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov