Stop Profiting Off Putin's War Act
This bill imposes a 50% excise tax through 2023 on the adjusted taxable income of certain major integrated oil companies during calendar quarters when the national average price of unleaded gasoline is equal to or greater than the national average price of unleaded gasoline on February 24, 2022, the day of the Russian invasion of Ukraine. The rate of such tax is increased to 75% for companies that raise prices in response to this new tax.
The bill requires tax revenues to be paid as rebates to eligible individuals and establishes the Gas Profit Recovery Fund to finance the payment of such rebates.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7103 Introduced in House (IH)]
<DOC>
117th CONGRESS
2d Session
H. R. 7103
To amend the Internal Revenue Code of 1986 to establish an excise tax
on the profits of oil companies and distribute them as a dividend to
taxpayers, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 16, 2022
Mr. Sean Patrick Maloney of New York introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to establish an excise tax
on the profits of oil companies and distribute them as a dividend to
taxpayers, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stop Profiting Off Putin's War
Act''.
SEC. 2. CRUDE OIL PROFIT TAX.
(a) In General.--Subtitle E of the Internal Revenue Code of 1986
(relating to alcohol, tobacco, and certain other excise taxes) is
amended by adding at the end thereof the following new chapter:
``CHAPTER 56--PROFIT ON CRUDE OIL
``Sec. 5896. Imposition of tax.
``Sec. 5897. Applicable profit.
``Sec. 5898. Special rules and definitions.
``SEC. 5896. IMPOSITION OF TAX.
``(a) In General.--In addition to any other tax imposed under this
title, there is hereby imposed on any applicable taxpayer an excise tax
in an amount equal to 50 percent of the applicable profit of such
taxpayer.
``(b) Applicable Taxpayer.--For purposes of this chapter, the term
`applicable taxpayer' means any major integrated oil company (as
defined in section 167(h)(5)(B), applied by substituting `$500,000,000'
for `$1,000,000,000' in clause (ii) thereof).
``(c) Special Rule for Certain Price Hikes.--If the Secretary,
after consultation with the Secretary of Energy and the Chair of the
Federal Trade Commission, determines that an applicable taxpayer has
raised prices as a result of the tax under subsection (a), such
subsection shall be applied by substituting `75 percent' for `50
percent'.
``(d) Termination.--No tax shall be imposed under this section
after December 31, 2023.
``SEC. 5897. APPLICABLE PROFIT.
``(a) General Rule.--For purposes of this chapter, the term
`applicable profit' means, with respect to a taxable year, the adjusted
taxable income of the applicable taxpayer for any calendar quarter in
which the national average price of unleaded gasoline is equal to or
greater than the national average price of unleaded gasoline on
February 24, 2022.
``(b) Adjusted Taxable Income.--For purposes of this chapter, with
respect to any applicable taxpayer, the term `adjustable taxable
income' means the taxable income of the taxpayer--
``(1) increased by--
``(A) the amount of any bonuses to executive
officers, and
``(B) the amount of any stock buybacks, and
``(2) reduced by--
``(A) the amount of any net operating loss
deduction under section 172, and
``(B) any deduction allowable for depreciation,
amortization, or depletion.
In the case of any applicable taxpayer which is a foreign corporation,
the adjusted taxable income shall be determined with respect to such
income which is effectively connected with the conduct of a trade or
business in the United States.
``SEC. 5898. SPECIAL RULES AND DEFINITIONS.
``(a) Withholding and Deposit of Tax.--The Secretary shall provide
such rules as are necessary for the withholding and deposit of the tax
imposed under section 5896.
``(b) Records and Information.--Each taxpayer liable for tax under
section 5896 shall keep such records, make such returns, and furnish
such information as the Secretary may by regulations prescribe.
``(c) Return of Applicable Profit Tax.--The Secretary shall provide
for the filing and the time of such filing of the return of the tax
imposed under section 5896.
``(d) Crude Oil.--The term `crude oil' includes crude oil
condensates and natural gasoline.
``(e) Businesses Under Common Control.--For purposes of this
chapter, all members of the same controlled group of corporations
(within the meaning of section 267(f)) and all persons under common
control (within the meaning of section 52(b) but determined by treating
an interest of more than 50 percent as a controlling interest) shall be
treated as 1 person.
``(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
chapter.''.
(b) Clerical Amendment.--The table of chapters for subtitle E of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new item:
``Chapter 56. Profit on Crude Oil.''.
(c) Deductibility of Applicable Profit Tax.--The first sentence of
section 164(a) of the Internal Revenue Code of 1986 (relating to
deduction for taxes) is amended by inserting after paragraph (5) the
following new paragraph:
``(6) The applicable profit tax imposed by section 5896.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2021.
SEC. 3. GASOLINE PRICE REBATES.
(a) In General.--In the case of an eligible individual, there shall
be allowed as a credit against the tax imposed by subtitle A for each
taxable year beginning after the date of the enactment of the Stop
Profiting Off Putin's War Act, an amount equal to the sum of the
gasoline price rebate amount for calendar quarters beginning in such
taxable year.
(b) Gasoline Price Rebate Amount.--For purposes of this section--
(1) In general.--The term ``gasoline price rebate amount''
means, with respect to any taxpayer for any calendar quarter
beginning in a taxable year, an amount determined by the
Secretary not later than 30 days after the end of such calendar
quarter taking into account the number of eligible individuals
and the amount of revenues in the Gas Profit Recovery Fund
resulting from the tax imposed by section 5896 for the
preceding calendar quarter.
(2) Special rule for joint returns.--In the case of an
eligible individual filing a joint return, the gasoline price
rebate amount shall be 150 percent of the amount determined
under paragraph (1) with respect to other taxpayers.
(3) Limitation based on adjusted gross income.--The amount
of the credit allowed by subsection (a) (determined without
regard to this subsection and subsection (e)) shall be reduced
(but not below zero) by 5 percent of so much of the eligible
individual's adjusted gross income as exceeds--
(A) $200,000 in the case of a joint return,
(B) $150,000 in the case of a head of household,
and
(C) $100,000 in any other case.
(c) Eligible Individual.--For purposes of this section, the term
``eligible individual'' means any individual other than--
(1) any nonresident alien individual,
(2) any individual who is a dependent of another taxpayer
for a taxable year beginning in the calendar year in which the
individual's taxable year begins, and
(3) an estate or trust.
(d) Definitions and Special Rules.--
(1) Dependent defined.--For purposes of this section, the
term ``dependent'' has the meaning given such term by section
152.
(2) Identification number requirement.--
(A) In general.--In the case of a return other than
a joint return, the gasoline price rebate amount in
subsection (b)(1) shall be treated as being zero unless
the taxpayer includes the valid identification number
of the taxpayer on the return of tax for the taxable
year.
(B) Joint returns.--In the case of a joint return,
the gasoline price rebate amount in subsection (b)(1)
shall be treated as being--
(i) 50 percent of the amount otherwise
determined without regard to this paragraph if
the valid identification number of only 1
spouse is included on the return of tax for the
taxable year, and
(ii) zero if the valid identification
number of neither spouse is so included.
(C) Valid identification number.--For purposes of
this paragraph, the term ``valid identification
number'' means a social security number issued to an
individual by the Social Security Administration on or
before the due date for filing the return for the
taxable year.
(D) Special rule for members of the armed forces.--
Subparagraph (B) shall not apply in the case where at
least 1 spouse was a member of the Armed Forces of the
United States at any time during the taxable year and
the valid identification number of at least 1 spouse is
included on the return of tax for the taxable year.
(E) Coordination with certain advance payments.--In
the case of any payment determined pursuant to
subsection (f)(6), a valid identification number shall
be treated for purposes of this paragraph as included
on the taxpayer's return of tax if such valid
identification number is available to the Secretary as
described in such subsection.
(F) Mathematical or clerical error authority.--Any
omission of a correct valid identification number
required under this paragraph shall be treated as a
mathematical or clerical error for purposes of applying
section 6213(g)(2) to such omission.
(3) Credit treated as refundable.--The credit allowed by
subsection (a) shall be treated as allowed by subpart C of part
IV of subchapter A of chapter 1.
(e) Coordination With Advance Refunds of Credit.--
(1) Reduction of refundable credit.--The amount of the
credit which would (but for this paragraph) be allowable under
subsection (a) for any taxable year shall be reduced (but not
below zero) by the aggregate refunds and credits made or
allowed to the taxpayer (or, except as otherwise provided by
the Secretary, any dependent of the taxpayer) under subsection
(f) for such taxable year. Any failure to so reduce the credit
shall be treated as arising out of a mathematical or clerical
error and assessed according to section 6213(b)(1).
(2) Joint returns.--Except as otherwise provided by the
Secretary, in the case of a refund or credit made or allowed
under subsection (f) with respect to a joint return, half of
such refund or credit shall be treated as having been made or
allowed to each individual filing such return.
(f) Advance Refunds and Credits.--
(1) In general.--Subject to paragraphs (5) and (6), for any
rebate taxable year, each individual who was an eligible
individual for the applicable taxable year shall be treated as
having made a payment against the tax imposed by chapter 1 for
such applicable taxable year in an amount equal to advance
refund amount for such rebate taxable year.
(2) Advance refund amount.--
(A) In general.--For purposes of paragraph (1), the
advance refund amount for any rebate taxable year is
the amount that would allowed as a credit under this
section for the applicable taxable year if this section
(other than subsection (e) and this subsection) were
applied to such applicable taxable year (without regard
to any effective date) using the gasoline price rebate
amount for the refund taxable year.
(B) Treatment of deceased individuals.--For
purposes of determining the advanced refund amount--
(i) any individual who was deceased before
the first day of the rebate taxable year shall
be treated for purposes of applying subsection
(d)(2) in the same manner as if the valid
identification number of such person was not
included on the return of tax for the
applicable taxable year (except that
subparagraph (D) thereof shall not apply), and
(ii) notwithstanding clause (i), in the
case of a joint return with respect to which
only 1 spouse is deceased before the first day
of the rebate taxable year, such deceased
spouse was a member of the Armed Forces of the
United States at any time during the applicable
taxable year, and the valid identification
number of such deceased spouse is included on
the return of tax for the applicable taxable
year, the valid identification number of 1 (and
only 1) spouse shall be treated as included on
the return of tax for the applicable taxable
year for purposes of applying subsection
(d)(2)(B) with respect to such joint return.
(3) Timing and manner of payments.--The Secretary shall,
subject to the provisions of this title, refund or credit any
overpayment attributable to this section and determined with
respect to any calendar quarter not later than 90 days after
the end of such calendar quarter. No refund or credit shall be
made or allowed under this subsection after December 31, 2023.
(4) No interest.--No interest shall be allowed on any
overpayment attributable to this subsection.
(5) Application to individuals who have filed a return of
tax for the year after the applicable taxable year.--
(A) Application to returns filed at time of initial
determination.--If, at the time of any determination
made pursuant to paragraph (3), the individual referred
to in paragraph (1) has filed a return of tax for the
individual's first taxable year beginning after the
applicable taxable year, paragraph (1) shall be applied
with respect to such individual by substituting
``taxable year following the applicable taxable year''
for ``applicable taxable year''.
(B) Additional payment.--
(i) In general.--In the case of any
individual who files, before the additional
payment determination date, a return of tax for
such individual's first taxable year beginning
after the applicable taxable year, the
Secretary shall make a payment (in addition to
any payment made under paragraph (1)) to such
individual equal to the excess (if any) of--
(I) the amount which would be
determined under paragraph (1) (after
the application of subparagraph (A)) by
applying paragraph (1) as of the
additional payment determination date,
over
(II) the amount of any payment made
with respect to such individual under
paragraph (1).
(ii) Additional payment determination
date.--The term ``additional payment
determination date'' means the earlier of--
(I) the date which is 90 days after
the date specified in section 6072(a)
with respect to returns for the taxable
year following the applicable taxable
year (determined after taking into
account any period disregarded under
section 7508A if such disregard applies
to substantially all returns for such
taxable year), or
(II) September 1 of the calendar
year following the applicable taxable
year.
(6) Application to certain individuals who have not filed a
return of tax for the preceding two years.--In the case of any
individual who, at the time of any determination made pursuant
to paragraph (3), has filed a tax return for neither the
applicable taxable year nor for the year following the
applicable taxable year, the Secretary shall, consistent with
rules similar to the rules of section 6428A(f)(5)(H)(i), apply
paragraph (1) on the basis of information available to the
Secretary and shall, on the basis of such information,
determine the advance refund amount with respect to such
individual without regard to subsection (b)(2) unless the
Secretary has reason to know that such amount would otherwise
be reduced by reason of such subsection.
(7) Special rule related to time of filing return.--Solely
for purposes of this subsection, a return of tax shall not be
treated as filed until such return has been processed by the
Internal Revenue Service.
(8) Applicable taxable year; rebate taxable year.--For
purposes of this subsection--
(A) Rebate taxable year.--The term ``rebate taxable
year'' means the taxable year for which a credit is
allowed under this section.
(B) Applicable taxable year.--The term ``applicable
taxable year'' means the second taxable year preceding
the rebate taxable year.
(g) Regulations.--The Secretary shall prescribe such regulations or
other guidance as may be necessary or appropriate to carry out the
purposes of this section, including--
(1) regulations or other guidance providing taxpayers the
opportunity to provide the Secretary information sufficient to
allow the Secretary to make payments to such taxpayers under
subsection (f) (including the determination of the amount of
such payment) if such information is not otherwise available to
the Secretary, and
(2) regulations or other guidance to ensure to the maximum
extent administratively practicable that, in determining the
amount of any credit under subsection (a) and any credit or
refund under subsection (f), an individual is not taken into
account more than once, including by different taxpayers and
including by reason of a change in joint return status or
dependent status between the taxable year for which an advance
refund amount is determined and the taxable year for which a
credit under subsection (a) is determined.
(h) Outreach.--The Secretary shall carry out a robust and
comprehensive outreach program to ensure that all taxpayers described
in subsection (g)(1) learn of their eligibility for the advance refunds
and credits under subsection (f); are advised of the opportunity to
receive such advance refunds and credits as provided under subsection
(g)(1); and are provided assistance in applying for such advance
refunds and credits.
SEC. 4. GAS PROFIT RECOVERY FUND.
(a) In General.--Subchapter A of chapter 98 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9512. GAS PROFIT RECOVERY FUND.
``(a) Establishment and Funding.--There is hereby established in
the Treasury of the United States a trust fund to be referred to as the
`Gas Profit Recovery Fund', consisting of such amounts as may be
appropriated or credited to such trust fund as provided for in this
section and section 9602(b).
``(b) Transfers to the Gas Profit Recovery Fund.--There are hereby
appropriated to the Gas Profit Recovery Fund amounts equivalent to the
taxes received in the Treasury under section 5896.
``(c) Use of Funds.--The Secretary shall pay from time to time from
the Gas Profit Recovery Fund to the general fund of the Treasury
amounts equal to the amounts of refunds provided under section 6433.''.
(b) Clerical Amendment.--The table of sections for subchapter A of
chapter 98 of such Code is amended by adding at the end the following
new item:
``Sec. 9512. Gas Profit Recovery Fund.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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