Big Oil Windfall Profits Tax Act

Key Points

• The bill creates a new 50% excise tax on large oil companies' extra profits when oil prices rise above 2025 levels. The tax applies per barrel of crude oil extracted or imported into the United States.
• Only very large oil producers and importers are subject to the tax. A company must extract or import more than 300,000 barrels per day to qualify, meaning this targets only the biggest players in the industry.
• All tax revenue goes into a new trust fund called the Protect Consumers from Gas Hikes Fund. That money is then sent back to eligible Americans as quarterly rebate payments to offset higher gas costs.
• Rebates phase out for higher earners: individuals above $75,000, heads of household above $112,500, and married couples above $150,000 see their payments reduced by 5% of income above those thresholds.
• The tax takes effect retroactively for oil removed or imported after December 31, 2025, but companies get extra time to pay for early quarters. Payments for quarters ending before July 1, 2026 are not due until September 30, 2026.

Votes

No votes have been recorded for this legislation yet.