SenateS. 4588119th Congress
Taxing Buybacks from Big Oil Windfalls Act
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[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.
_______________________________________________________________________
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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