Big Oil Windfall Profits Tax Act
Sponsored By: Senator Whitehouse, Sheldon [D-RI]
Introduced
Summary
A new windfall profits tax on crude oil would charge large U.S. producers and importers when quarterly Brent prices exceed the 2025 average. Revenue would flow into a dedicated Treasury trust called the Protect Consumers from Gas Price Hikes Fund to finance refundable gasoline rebates.
Show full summary
- Producers and importers: The bill would impose a quarterly excise equal to 50% of the amount that the average quarterly Brent price exceeds the 2025 average. It targets taxpayers with average daily extraction or imports above 300,000 barrels, with related entities aggregated.
- Households and drivers: It would create a refundable gasoline price rebate that equals the sum of quarterly rebate amounts. Joint filers would get 150% of the single filer rebate and the credit phases out above adjusted gross incomes of $150,000 for joint returns, $112,500 for heads of household, and $75,000 for other filers.
- Administration and timing: The Secretary would issue withholding, filing, record, and reporting rules and run outreach and implementation guidance including advance payments. The tax and rebate rules would apply to crude removed or entered after December 31, 2025 with a transition rule for early 2026 quarters.
- U.S. possessions: Possessions using a mirror-code tax system would receive payments equal to their loss from the change. Other possessions could get estimated-benefit payments if they submit approved plans to promptly distribute funds.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 1 costs, 1 mixed.
New windfall tax on oil
If enacted, this bill would create a quarterly windfall excise tax on large U.S. crude producers and importers. The per-barrel rate would equal 50% of how much the quarter's average Brent price exceeds the 2025 average. The tax would apply only to taxpayers that averaged more than 300,000 barrels per day in 2025 or that exceed 300,000 barrels per day in a quarter. A barrel is 42 U.S. gallons and fractional barrels are taxed pro rata. The tax would apply to crude removed or entered after December 31, 2025. Treasury and the IRS would issue rules for withholding, deposits, records, returns, and payment timing; some early quarters would not be due before September 30, 2026.
Quarterly gas rebates for households
If enacted, this bill would create a refundable gasoline price rebate credit for eligible individuals for tax years starting after December 31, 2025. Each year's credit would equal the sum of quarterly per-person rebates that Treasury must set within 30 days after each quarter based on the number of eligible individuals and the Protect Consumers from Gas Hikes Fund receipts from the windfall tax. Joint filers would get 150% of the per-person amount. The credit would be reduced by 5% of the amount your AGI is over $150,000 (joint), $112,500 (head of household), or $75,000 (other). You must have a valid Social Security number issued by SSA on or before the return due date or your rebate can be reduced or denied; special Armed Forces rules apply. Treasury would create a trust fund to hold the windfall tax receipts and pay the rebates. For U.S. possessions, Treasury would pay amounts to offset losses or provide estimated benefits, with special rules for mirror-code systems and approved distribution plans; people who get a possession credit could not also get a duplicate U.S. credit.
Sponsors & CoSponsors
Sponsor
Whitehouse, Sheldon [D-RI]
RI • D
Cosponsors
Sen. Baldwin, Tammy [D-WI]
WI • D
Sponsored 3/17/2026
Sen. Blumenthal, Richard [D-CT]
CT • D
Sponsored 3/17/2026
Sen. Booker, Cory A. [D-NJ]
NJ • D
Sponsored 3/17/2026
Sen. Kaine, Tim [D-VA]
VA • D
Sponsored 3/17/2026
Sen. Markey, Edward J. [D-MA]
MA • D
Sponsored 3/17/2026
Sen. Merkley, Jeff [D-OR]
OR • D
Sponsored 3/17/2026
Sen. Murphy, Christopher [D-CT]
CT • D
Sponsored 3/17/2026
Sen. Reed, Jack [D-RI]
RI • D
Sponsored 3/17/2026
Sen. Sanders, Bernard [I-VT]
VT • I
Sponsored 3/17/2026
Sen. Smith, Tina [D-MN]
MN • D
Sponsored 3/17/2026
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 3/17/2026
Sen. Hirono, Mazie K. [D-HI]
HI • D
Sponsored 3/18/2026
Peter Welch
VT • D
Sponsored 5/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov