Big Oil Windfall Profits Tax Act
Sponsored By: Representative Khanna
Introduced
Summary
This bill would create a new __windfall tax on crude oil__ and use the revenue to fund refundable quarterly gasoline rebates for eligible households through a dedicated Treasury trust fund.
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- Large oil producers and importers that averaged more than 300,000 barrels per day in 2025 or in a calendar quarter would face a quarterly excise tax on U.S. production and imports. The tax equals 50% times how much the quarter's Brent price exceeds a reference level.
- A new Protect Consumers from Gas Price Hikes Fund would collect the tax revenue and finance a refundable quarterly gasoline rebate for eligible individuals. The rebate applies a joint-return multiplier of 150% and is reduced as adjusted gross income rises.
- U.S. possessions with mirror income tax systems would receive payments to offset impacts and cover administrative costs, with rules to avoid double credits for people who get similar relief from a possession.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
Windfall crude oil excise tax
If enacted, the bill would impose a quarterly excise tax on taxable crude oil produced in or entered into the United States by very large producers or importers. A "covered taxpayer" would be one whose average daily extraction plus importation exceeded 300,000 barrels in calendar year 2025 or in the quarter. The tax per barrel would equal 50% times the amount the quarterly Brent price exceeds the Brent average for 2025, with an inflation adjustment for quarters in tax years beginning after 2026. Fractional barrels would be taxed pro rata. The amendments would apply to crude removed or entered after December 31, 2025, and Treasury would write rules for withholding, returns, deposits, and enforcement.
Quarterly gasoline rebates for households
If enacted, the bill would create a refundable quarterly gasoline rebate for tax years beginning after December 31, 2025. The Treasury would set each quarter's per-person amount within 30 days after quarter-end by dividing the prior quarter's windfall tax receipts by the number of eligible individuals. Joint filers would get 150% of the single-person amount. The credit would be reduced by 5% of AGI above $150,000 (joint), $112,500 (head of household), and $75,000 (other). Nonresident aliens, dependents, and estates or trusts would be excluded. You must include a valid Social Security number to receive the rebate; on joint returns the rebate is half if only one spouse SSN is included, with a narrow Armed Forces exception. The rebate payments would be paid from a new Treasury trust fund that collects the windfall tax, and Treasury would pay U.S. possessions to offset effects on their tax systems or to distribute payments to residents.
Sponsors & CoSponsors
Sponsor
Khanna
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
Pingree
ME • D
Sponsored 5/14/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov