United States 117th Congress Status: Died 1 D cosponsors

HR 7061 — Big Oil Windfall Profits Tax Act

Last action — Referred to the House Committee on Ways and Means.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Big Oil Windfall Profits Tax Act This bill imposes an excise tax on the windfall profits of crude oil on taxpayers who extracted and imported more than 300,000 barrels (a barrel equals 42 U.S. gallons) of taxable crude oil (i.e., crude oil, crude oil condensates, and natural gasoline) in 2019, or who extracted and imported that amount in the current calendar quarter. The bill requires rebates of the tax collected to be paid to individual taxpayers. The bill establishes the Protect Consumers from Gas Hikes Fund to finance such rebates.

Bill Text

Sections of law this bill changes

2 sections in 2 laws

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).

Assessment · 26 U.S.C. ch. 63 1 section
  • § 6211 Definition of a deficiency Amends

    26 U.S.C. § 6211 — at 6211(b)(4)(A)

    The law today

    (a) In general For purposes of this title in the case of income, estate, and gift taxes imposed by subtitles A and B and excise taxes imposed by chapters 41, 42, 43, and 44 the term “deficiency” means the amount by which the tax imposed by subtitle A or B, or chapter 41, 42, 43, or 44 exceeds the excess of— (1) the sum of (A) the amount shown as the tax by the taxpayer upon his return, if a return was made by the taxpayer and an amount was shown as the tax by the taxpayer thereon, plus (B) the amounts previously assessed (or collected without assessment) as a deficiency, over— (2) the amount of rebates, as defined in subsection (b)(2), made. (b) Rules for application of subsection (a) For purposes of this section— (1) The tax imposed by subtitle A and the tax shown on the return shall both be determined without regard to payments on account of estimated tax, without regard to the credit under section 31, without regard to the credit under section 33, and without regard to any credits resulting from the collection of amounts assessed under section 6851 or 6852 (relating to termination assessments). (2) The term “rebate” means so much of an abatement, credit, refund, or other repayment, as was made on the ground that the tax imposed by subtitle A or B or chapter 41, 42, 43, or 44 was less than the excess of the amount specified in subsection (a)(1) over the rebates previously made. (3) The computation by the Secretary, pursuant to section 6014, of the tax imposed by chapter 1 shall be considered as having been made by the taxpayer and the tax so computed considered as shown by the taxpayer upon his return. (4) For purposes of subsection (a)— (A) any excess of the sum of the credits allowable under sections 21 by reason of subsection (g) thereof, 24 by reason of subsections (d) and (i)(1) thereof, 25A by reason of subsection (i) thereof, 32, 34, 35, 36, 36B, 6428, 6428A, 6428B, and 7527A over the tax imposed by subtitle A (determined without regard to such credits), and (B) any excess of the sum of such credits as shown by the taxpayer on his return over the amount shown as the tax by the taxpayer on such return (determined without regard to such credits), shall be taken into account as negative amounts of tax. (c) Coordination with subchapter C In determining the amount of any deficiency for purposes of this subchapter, adjustments to partnership-related items shall be made only as provided in subchapter C.

    229 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Appropriations · 31 U.S.C. ch. 13 1 section
  • § 1324 Refund of internal revenue collections Amends

    31 U.S.C. § 1324 — at 1324(b)

    The law today

    (a) Necessary amounts are appropriated to the Secretary of the Treasury for refunding internal revenue collections as provided by law, including payment of— (1) claims for prior fiscal years; and (2) accounts arising under— (A) “Allowance or drawback (Internal Revenue)”; (B) “Redemption of stamps (Internal Revenue)”; (C) “Refunding legacy taxes, Act of March 30, 1928”; (D) “Repayment of taxes on distilled spirits destroyed by casualty”; and (E) “Refunds and payments of processing and related taxes”. (b) Disbursements may be made from the appropriation made by this section only for— (1) refunds to the limit of liability of an individual tax account; and (2) refunds due from credit provisions of the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.) enacted before January 1, 1978, or enacted by the Taxpayer Relief Act of 1997, or from section 21, 24, 25A, 35, 36, 36A,1 36B, 168(k)(4)(F), 53(e),1 54B(h),1 3131, 3132, 3134, 6428, 6428A, 6428B, 6431,1 or 7527A of such Code, or due under section 3081(b)(2) of the Housing Assistance Tax Act of 2008.

    275 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Also cites: 26 U.S.C. § 6402, 26 U.S.C. § 6433

How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes a new windfall profits excise tax on crude oil and introduces rebates for taxpayers based on the revenues generated from this tax.

  • Subtitle E of the Internal Revenue Code of 1986

    Chapter 56--WINDFALL PROFITS ON CRUDE OIL

    Creates a new chapter in the Internal Revenue Code to impose a windfall profits tax on crude oil.

  • Section 5896

    In each calendar quarter there is hereby imposed on any covered taxpayer an excise tax at the rate determined under subsection (b) on-- (1) each barrel of taxable crude oil...

    Imposes an excise tax on crude oil extracted within the U.S. or imported, based on a calculated rate.

  • Section 5896(b)

    The rate of tax imposed by this section on any barrel of taxable crude oil for any calendar quarter is the product of-- (A) 50 percent, and (B) the excess (if any) of-- (i) the average price of a barrel of Brent crude oil over the covered calendar quarter, and (ii) the average price of a barrel of Brent crude oil over the period beginning on January 1, 2015, and ending on December 31, 2019.

    Defines the rate of the excise tax on crude oil based on price fluctuations.

  • Section 5897(a)

    (1) Covered taxpayer.-- (A) In general.--The term 'covered taxpayer' means, with respect to any calendar quarter, any taxpayer if-- (i) the average daily number of barrels of taxable crude oil extracted and imported by the taxpayer for calendar year 2019 exceeded 300,000 barrels...

    Defines who qualifies as a 'covered taxpayer' subject to the new windfall profits tax.

  • Subchapter B of chapter 65 of the Internal Revenue Code of 1986

    SEC. 6433. GASOLINE PRICE REBATES.

    Introduces a new section for gasoline price rebates to eligible individuals.

  • SEC. 6433(a)

    In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A...

    Establishes a tax credit for eligible individuals based on gasoline price rebates.

  • SEC. 6433(b)

    The term 'gasoline price rebate amount' means for any taxpayer for any calendar quarter beginning in a taxable year...

    Defines the calculation of the gasoline price rebate based on revenues from the windfall tax.

  • SEC. 6433(c)

    The term 'eligible individual' means any individual other than-- (1) any nonresident alien individual,...

    Defines who qualifies as an eligible individual for receiving gasoline price rebates.

  • SEC. 6433(e)(1)

    The amount of the credit which would (but for this paragraph) be allowable under subsection (a) for any taxable year shall be reduced...

    Introduces limitations on the gasoline price rebate credit based on adjusted gross income.

  • Subtitle E of the Internal Revenue Code of 1986

    Chapter 56. Windfall Profit on Crude Oil.

    Adds a new chapter heading for the windfall profits tax in the Internal Revenue Code.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the House Committee on Ways and Means.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

taxation
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Frequently asked questions

What does HR 7061 do?
Big Oil Windfall Profits Tax Act This bill imposes an excise tax on the windfall profits of crude oil on taxpayers who extracted and imported more than 300,000 barrels (a barrel equals 42 U.S. gallons) of taxable crude oil (i.e., crude oil, crude oil condensates, and natural gasoline) in 2019, or who extracted and imported that amount in the current calendar quarter. The bill requires rebates of the tax collected to be paid to individual taxpayers. The bill establishes the Protect Consumers from Gas Hikes Fund to finance such rebates.
Who sponsors HR 7061?
HR 7061 is sponsored by Khanna, Ro (Democratic).
What is the current status of HR 7061?
This bill died with 117th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 7061?
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