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119-hr-8803119th CongressWALLET

Iran War Oil Crisis Windfall Profits Tax Act

Sponsored By: Representative Sherman, Brad [D-CA-32]

Introduced

Summary

**This bill would create a new nationwide quarterly *windfall profits tax on crude oil* and use those revenues to fund quarterly gasoline price rebates tied to oil prices and Iran-related disruptions.** It targets sudden oil price spikes by taxing the amount WTI exceeds $75 per barrel and directing proceeds into a dedicated relief fund for individual rebates.

Show full summary
  • Large oil producers and importers would pay the tax if their average daily extraction or imports exceed 100,000 barrels, with the tax equal to the WTI price above $75 per barrel for each applicable quarter.
  • Drivers and households would be eligible for refundable gasoline price rebate credits for tax years after 2025, with rebate amounts set quarterly based on fund revenue and the count of eligible individuals.
  • U.S. territories would receive payments to offset losses or estimated benefits under their tax systems, and the Treasury would hold collections in an "Iran War Gasoline Price Relief Fund" to finance rebates.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Refundable gasoline rebates for individuals

If enacted, this bill would create a refundable gasoline-price rebate people could claim on their tax return for tax years starting after December 31, 2025. The IRS would set each quarter's payment within 30 days after the quarter ends and would issue rules within 90 days of enactment and do outreach within 30 days. The rebates would be paid from a new Treasury trust fund that receives the windfall oil tax receipts. Eligible people would exclude nonresident aliens, persons claimed as dependents, and estates or trusts; U.S. possessions would get special payments under mirror-code rules or approved distribution plans.

Windfall oil tax on large producers

If enacted, the bill would impose a temporary quarterly windfall excise tax on large crude producers and importers when the quarterly average WTI price is over $75 per barrel. The per-barrel tax would equal 100% times the amount WTI exceeds $75, apply to taxable crude oil produced or entered after enactment, and would affect any taxpayer averaging over 100,000 barrels per day in 2025 or in the quarter. The Treasury must write withholding, deposit, reporting, and recordkeeping rules and issue implementing regulations within 90 days of enactment. The tax runs quarter-by-quarter until the President declares hostilities with Iran ended, the Strait of Hormuz reopened, and WTI is below $75.

Sponsors & CoSponsors

Sponsor

Sherman, Brad [D-CA-32]

CA • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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