SenateS. 5569119th Congress
Oil Company Windfall Profits Tax Act of 2026
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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5569 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 5569
To amend the Internal Revenue Code of 1986 to impose a fee on excess
oil profits.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 28, 2026
Mr. Schiff 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 impose a fee on excess
oil profits.
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 ``Oil Company Windfall Profits Tax Act
of 2026''.
SEC. 2. EXCESS OIL PROFIT FEE.
(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--FEE ON EXCESS OIL PROFIT
``Sec. 5896. Imposition of fee.
``Sec. 5897. Excess profit; etc.
``Sec. 5898. Special rules and definitions.
``SEC. 5896. IMPOSITION OF FEE.
``(a) In General.--In addition to any other tax imposed under this
title, there is hereby imposed on any applicable taxpayer an excise fee
in an amount equal to 50 percent of the excess profit of such taxpayer
for any taxable year beginning after December 31, 2025.
``(b) Applicable Taxpayer.--For purposes of this chapter, the term
`applicable taxpayer' means any integrated oil company (as defined in
section 291(b)(4)).
``SEC. 5897. EXCESS PROFIT; ETC.
``(a) General Rule.--For purposes of this chapter, the term `excess
profit' means the excess of the adjusted taxable income of the
applicable taxpayer for the taxable year over the reasonably inflated
average profit for such taxable year.
``(b) Adjusted Taxable Income.--For purposes of this chapter, with
respect to any applicable taxpayer, the adjusted taxable income for any
taxable year is equal to the taxable income for such taxable year
(within the meaning of section 63 and determined without regard to this
subsection) increased by any interest expense deduction, charitable
contribution deduction, and any net operating loss deduction carried
forward from any prior taxable year. 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.
``(c) Reasonably Inflated Average Profit.--For purposes of this
chapter, with respect to any applicable taxpayer, the reasonably
inflated average profit for any taxable year is an amount equal to--
``(1) the average of the adjusted taxable income of such
taxpayer during the 5-taxable-year period beginning with the
first taxable year beginning after December 31, 2020, as
determined without regard to the taxable year with the highest
adjusted taxable income in such period, plus
``(2) an amount equal to 10 percent of the amount
determined under paragraph (1).
``SEC. 5898. SPECIAL RULES AND DEFINITIONS.
``(a) Withholding and Deposit of Fee.--The Secretary shall provide
such rules as are necessary for the withholding and deposit of the fee
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 Fee.--The Secretary shall provide for the filing
and the time of such filing of the return of the fee imposed under
section 5896.
``(d) 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.
``(e) Regulations.--The Secretary shall prescribe such regulations
as may be necessary or appropriate to carry out the purposes of this
chapter.''.
(b) Transfer of Revenue to Highway Trust Fund.--Section 9503 of the
Internal Revenue Code of 1986 is amended--
(1) in subsection (b)--
(A) in the heading, by inserting ``, Fees,'' after
``Taxes'',
(B) in paragraph (1)--
(i) in the heading, by inserting ``and
fees'' after ``taxes'',
(ii) in the matter preceding subparagraph
(A), by inserting ``and fees'' after ``the
taxes'',
(iii) in subparagraph (D), by striking
``and'' at the end,
(iv) in subparagraph (E), by striking the
period at the end and inserting ``, and'', and
(v) by inserting after subparagraph (E) the
following new subparagraph:
``(F) section 5896 (relating to fee on excess oil
profit).'', and
(C) in paragraph (4)--
(i) in the heading, by inserting ``and
fees'' after ``taxes'',
(ii) in the matter preceding subparagraph
(A), by inserting ``and fees'' after ``the
taxes'',
(iii) in subparagraph (C), by striking
``or'' at the end,
(iv) in subparagraph (D)(iii), by striking
the period at the end and inserting ``, or'',
and
(v) by inserting after subparagraph (D) the
following new subparagraph:
``(E) section 5896 with respect to an amount equal
to 0.5435 percent of such fee.'', and
(2) in subsection (e)--
(A) in paragraph (2), by striking ``The Secretary
of the Treasury'' and inserting ``Subject to paragraph
(6), the Secretary of the Treasury'',
(B) in paragraph (5), by striking ``the application
of paragraph (2)'' and inserting ``the application of
paragraphs (2) and (6)'', and
(C) by adding at the end the following new
paragraph:
``(6) Additional transfer to mass transit account.--In
addition to the transfer described in paragraph (2), the
Secretary of the Treasury shall transfer to the Mass Transit
Account an amount equal to 15.63 percent of the amounts
appropriated to the Highway Trust Fund under subsection (b)
which (after the application of paragraph (4)(E) of such
subsection) are attributable to fees under section 5896.''.
(c) Transfer of Revenue to Leaking Underground Storage Tank Trust
Fund.--Section 9508(b) of the Internal Revenue Code of 1986 is
amended--
(1) in paragraph (3), by striking ``and'' at the end,
(2) in paragraph (4), by striking the period at the end and
inserting ``, and'', and
(3) by inserting after paragraph (4) the following new
paragraph:
``(5) fees received in the Treasury under 5896 (relating to
fee on excess oil profit) in an amount equal to 0.5435 percent
of such fee.''.
(d) Clerical Amendment.--The table of chapters for subtitle E of
such Code is amended by adding at the end the following new item:
``Chapter 56--Fee on Excess Oil Profit''.
(e) Deductibility of Fee.--The first sentence of section 164(a) of
such Code is amended by inserting after paragraph (4) the following new
paragraph:
``(5) The fee imposed by section 5896.''.
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