H.R. 8803

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8803 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 8803

To amend the Internal Revenue Code of 1986 to impose a windfall profits 
excise tax on crude oil and to rebate the tax collected back to 
individual taxpayers until the President declares that all hostilities 
with Iran have ceased, the Strait of Hormuz is fully reopened, and the 
price of oil drops below $75 per barrel.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

May 13, 2026

Mr. Sherman 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 impose a windfall profits 
excise tax on crude oil and to rebate the tax collected back to 
individual taxpayers until the President declares that all hostilities 
with Iran have ceased, the Strait of Hormuz is fully reopened, and the 
price of oil drops below $75 per barrel.

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 ``Iran War Oil Crisis Windfall Profits 
Tax Act''.

SEC. 2. WINDFALL PROFITS TAX.

(a) In General.--Subtitle E of the Internal Revenue Code of 1986 is 
amended by adding at the end thereof the following new chapter:

``CHAPTER 56--WINDFALL PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Definitions and special rules.

``SEC. 5896. IMPOSITION OF TAX.

``(a) In General.--In addition to any other tax imposed under this 
title, in each applicable calendar quarter there is hereby imposed on 
any covered taxpayer an excise tax at the rate determined under 
subsection (c) on--
``(1) each barrel of taxable crude oil extracted by the 
taxpayer within the United States and removed from the property 
of such taxpayer during the calendar quarter, and
``(2) each barrel of taxable crude oil entered into the 
United States during the calendar quarter by the taxpayer for 
consumption, use, or warehousing.
``(b) Applicable Calendar Quarter.--For purposes of this section, 
the term `applicable calendar quarter' means any calendar quarter 
beginning with the quarter which includes the date of the enactment of 
this chapter, and ending with the quarter in which--
``(1) all hostilities with Iran have ceased (as declared by 
the President),
``(2) the Strait of Hormuz is fully reopened, and
``(3) the price of oil per barrel falls below $75 per the 
West Texas Intermediate.
``(c) Rate of Tax.--
``(1) In general.--The rate of tax imposed by this section 
on any barrel of taxable crude oil for any calendar quarter is 
the product of--
``(A) 100 percent, and
``(B) so much of the price of a barrel of West 
Texas Intermediate oil over the covered calendar 
quarter as exceeds $75.
``(2) Inflation adjustment.--
``(A) In general.--In the case of a calendar 
quarter beginning in any taxable year beginning after 
2026, the amount determined under paragraph (1)(B)(ii) 
shall be increased by an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment 
determined under section 1(f)(3) for the 
calendar year in which the taxable year begins, 
determined by substituting `2025' for `2016' in 
subparagraph (A)(ii) thereof.
``(B) Rounding.--If any dollar amount, after being 
increased under subparagraph (A), is not a multiple of 
$0.50, such dollar amount shall be rounded to the next 
lowest multiple of $0.01.
``(d) Fractional Part of Barrel.--In the case of a fraction of a 
barrel, the tax imposed by subsection (a) shall be the same fraction of 
the amount of such tax imposed on the whole barrel.

``SEC. 5897. DEFINITIONS AND SPECIAL RULES.

``(a) Definitions.--For purposes of this chapter--
``(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 2025 exceeded 
100,000 barrels, or
``(ii) the average daily number of barrels 
of taxable crude oil extracted and imported by 
the taxpayer for the calendar quarter exceeds 
100,000.
``(B) Aggregation rules.--All persons treated as a 
single employer under subsection (a) or (b) of section 
52 or subsection (m) or (o) of section 414 shall be 
treated as one person for purposes of paragraph (1).
``(2) Taxable crude oil.--The term `taxable crude oil' 
includes crude oil, crude oil condensates, natural gasoline, 
gasoline, and diesel.
``(3) Barrel.--The term `barrel' means 42 United States 
gallons.
``(4) United states.--The term `United States' has the same 
meaning given such term under section 4612.
``(b) 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 on any taxable crude oil.
``(c) Records and Information.--Each taxpayer liable for tax under 
section 5896 shall keep such records, make such returns, and furnish 
such information (to the Secretary and to other persons having an 
interest in the taxable crude oil) with respect to such oil as the 
Secretary may by regulations prescribe.
``(d) Return of Windfall 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.
``(e) Regulations.--Not later than 90 days after the date of the 
enactment of this section, 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. Windfall Profit on Crude Oil.''.

(c) Effective Date.--The amendments made by this section shall 
apply to crude oil removed or entered after the date of the enactment 
of this Act, in calendar quarters ending after such date.

SEC. 3. GASOLINE PRICE REBATES.

(a) In General.--Subchapter B of chapter 65 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 6436. 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 December 31, 2025, 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.--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 Iran War Gasonline Price Relief Fund resulting from 
the tax imposed by section 5896 for the preceding calendar quarter.
``(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) 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) Regulations.--Not later than 90 days after the date of the 
enactment of this section, the Secretary shall prescribe such 
regulations or other guidance as may be necessary or appropriate to 
carry out the purposes of this section.
``(f) Outreach.--Not later than 30 days after the date of the 
enactment of this section, the Secretary shall carry out a robust and 
comprehensive outreach program to ensure that all taxpayers learn of 
their eligibility for the credits allowed under this section and are 
provided assistance in claiming such credits.''.
(b) Treatment of Certain Possessions.--
(1) Payments to possessions with mirror code tax systems.--
The Secretary of the Treasury shall pay to each possession of 
the United States which has a mirror code tax system amounts 
equal to the loss (if any) to that possession by reason of the 
amendments made by this section. Such amounts shall be 
determined by the Secretary of the Treasury based on 
information provided by the government of the respective 
possession.
(2) Payments to other possessions.--The Secretary of the 
Treasury shall pay to each possession of the United States 
which does not have a mirror code tax system amounts estimated 
by the Secretary of the Treasury as being equal to the 
aggregate benefits (if any) that would have been provided to 
residents of such possession by reason of the amendments made 
by this section if a mirror code tax system had been in effect 
in such possession. The preceding sentence shall not apply 
unless the respective possession has a plan, which has been 
approved by the Secretary of the Treasury, under which such 
possession will promptly distribute such payments to its 
residents.
(3) Inclusion of administrative expenses.--The Secretary of 
the Treasury shall pay to each possession of the United States 
to which the Secretary makes a payment under paragraph (1) or 
(2) an amount equal to the increase (if any) of the 
administrative expenses of such possession--
(A) in the case of a possession described in 
paragraph (1), by reason of the amendments made by this 
section, and
(B) in the case of a possession described in 
paragraph (2), by reason of carrying out the plan 
described in such paragraph, or
the amount described in subparagraph (A) shall be determined by 
the Secretary of the Treasury based on information provided by 
the government of the respective possession.
(4) Coordination with credit allowed against united states 
income taxes.--No credit shall be allowed against United States 
income taxes under section 6434 of the Internal Revenue Code of 
1986 (as added by this section) to any person--
(A) to whom a credit is allowed against taxes 
imposed by the possession by reason of the amendments 
made by this section, or
(B) who is eligible for a payment under a plan 
described in paragraph (2).
(5) Mirror code tax system.--For purposes of this 
subsection, the term ``mirror code tax system'' means, with 
respect to any possession of the United States, the income tax 
system of such possession if the income tax liability of the 
residents of such possession under such system is determined by 
reference to the income tax laws of the United States as if 
such possession were the United States.
(6) Treatment of payments.--For purposes of section 1324 of 
title 31, United States Code, the payments under this 
subsection shall be treated in the same manner as a refund due 
from a credit provision referred to in subsection (b)(2) of 
such section.
(7) Secretary of the treasury.--For purposes of this 
subsection, the term ``Secretary of the Treasury'' includes the 
Secretary's delegate.
(c) Administrative Provisions.--
(1) Definition of deficiency.--Section 6211(b)(4)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``and 
6433'' and inserting ``6433, and 6434,''.
(2) Conforming amendments.--
(A) Paragraph (2) of section 1324(b) of title 31, 
United States Code, is amended by inserting ``6434,'' 
after ``6433,''.
(B) The table of sections for subchapter B of 
chapter 65 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new item:

``Sec. 6436. Gasoline price rebates.''.
(d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.

SEC. 4. IRAN WAR GASONLINE PRICE RELIEF 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. IRAN WAR GASONLINE PRICE RELIEF 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 
`Iran War Gasonline Price Relief 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 Iran War Gasonline Price Relief Fund.--There 
are hereby appropriated to the Iran War Gasonline Price Relief 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 Iran War Gasonline Price Relief Fund to the general fund of the 
Treasury amounts equal to the amounts of refunds provided under section 
6436.''.
(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. Iran War Gasonline Price Relief Fund.''.
(c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2025.
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