S.Amdt. 4410

The amendment, titled the Big Oil Windfall Profits Tax Act, aims to add a new excise tax on certain crude oil activities and provide gasoline price rebates to eligible individuals.

What it aims to change or add:

• Windfall Profits Tax: It establishes an excise tax on covered taxpayers for each barrel of taxable crude oil extracted within the United States and removed from their property, as well as crude oil entered into the United States for warehousing, use, or consumption.
• Tax Rate: The tax rate is calculated as 50 percent of the excess of the average price of a barrel of Brent crude oil over a covered calendar quarter compared to the average price of a barrel of Brent crude oil from January 1, 2025, to December 31, 2025.
• Covered Taxpayers: The tax applies to taxpayers whose average daily number of barrels of taxable crude oil extracted and imported exceeds 300,000 barrels for the calendar year 2025 or the specific calendar quarter.
• Gasoline Price Rebates: It creates a refundable tax credit for eligible individuals. The rebate amount is determined by the Secretary based on the number of eligible individuals and the revenue collected in the Protect Consumers from Gas Hikes Fund.
• Rebate Limitations: The credit is reduced for individuals whose adjusted gross income exceeds:
  • $150,000 for joint returns.
  • $112,500 for head of household.
  • $75,000 for any other case.
• Protect Consumers from Gas Price Hikes Fund: It establishes a trust fund to hold the taxes collected under the windfall profits tax, which is then used to fund the gasoline price rebates.