S. 4588

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4588 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4588

To amend the Internal Revenue Code of 1986 to increase the excise tax 
for the repurchase of corporate stock by large oil and gas companies.

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IN THE SENATE OF THE UNITED STATES

May 20, 2026

Mr. Wyden (for himself, Mr. Schumer, Mr. Bennet, Mr. Whitehouse, Mr. 
Welch, Mr. Kim, Mr. Blumenthal, Mr. Van Hollen, Mr. Reed, Mr. Booker, 
Ms. Hirono, Mr. Markey, Mr. Merkley, Mr. Schatz, and Ms. Smith) 
introduced the following bill; which was read twice and referred to the 
Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to increase the excise tax 
for the repurchase of corporate stock by large oil and gas companies.

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 ``Taxing Buybacks from Big Oil 
Windfalls Act''.

SEC. 2. INCREASE IN TAX ON REPURCHASE OF CORPORATE STOCK BY LARGE OIL 
AND GAS COMPANIES.

Section 4501 of the Internal Revenue Code of 1986 is amended by 
redesignating subsection (f) as subsection (g) and by inserting after 
subsection (e) the following new subsection:
``(f) Application to Large Oil and Gas Companies.--
``(1) In general.--In the case of a covered corporation 
which is an applicable corporation for the taxable year, 
subsection (a) shall be applied by substituting `25 percent' 
for `1 percent'.
``(2) Applicable corporation.--For purposes of this 
subsection--
``(A) In general.--The term `applicable 
corporation' means, with respect to any taxable year, 
any corporation if--
``(i) the average annual gross receipts of 
such corporation for the 3-taxable-year period 
ending with the taxable year which precedes 
such taxable year equals or exceeds 
$1,000,000,000, and
``(ii) such corporation is primarily 
engaged in 1 or more oil or natural gas trades 
or businesses during the taxable year.
For purposes of clause (i), rules similar to the rules 
of paragraphs (2) and (3) of section 448(c) shall 
apply.
``(B) Oil or natural gas trade or business.--The 
term `oil or natural gas trade or business' means any 
trade or business that consists of one or more of the 
following:
``(i) The production of oil or natural gas.
``(ii) The refining of oil or natural gas.
``(iii) The processing of oil or natural 
gas.
``(iv) The transportation of oil or natural 
gas.
``(v) The distribution of oil or natural 
gas.
``(3) Application of subsection.--
``(A) In general.--This subsection shall apply to 
repurchases of stock made--
``(i) after the date of the enactment of 
this subsection, and
``(ii) before the first day of the first 
month beginning after the gasoline price 
requirement of subparagraph (B) is met.
``(B) Gasoline price requirement.--The gasoline 
price requirement of this subparagraph is met if the 
weekly retail price of all formulations of regular 
gasoline (as determined by the Energy Information 
Administration of the Department of Energy) is less 
than $2.937 per gallon for each week occurring during 
any 5-consecutive week period ending after the date of 
the enactment of this subsection.
``(C) Special rule.--For purposes of applying 
subsection (c)(3) to any taxable year which includes a 
period to which this subsection applies and a period to 
which this subsection does not apply, the amount of the 
reduction determined under such subsection for such 
taxable year shall be applied--
``(i) by reducing stock repurchased during 
the period this subsection does not apply in 
the amount which bears the same ratio to the 
total amount of the reduction so determined for 
such taxable year as--
``(I) the number of days in the 
taxable year during such period, bears 
to
``(II) the total number of days in 
such taxable year, and
``(ii) by reducing stock repurchased during 
the period this subsection applies by the 
excess (if any) of the total amount of the 
reduction so determined for such taxable year 
over the amount of the reduction determined 
under clause (i).''.
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