Big Oil Windfall Profits Tax Act

Sponsor: Ro Khanna (Democratic-CA)March 17, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

Americans would get rebates from a new tax on big oil companies' extra profits.

This bill would create a new tax on the extra profits of large crude oil companies. The money collected from this tax would then be sent back to most individual taxpayers as a refundable credit. This aims to help everyday Americans with high gasoline prices.

What Would Change

Today, there is no federal tax on the extra profits oil companies make when crude oil prices are high, and no federal program to send that money back to people. If this bill passes, large crude oil companies would pay a 50 percent tax on certain profits when oil prices are high, and most individual taxpayers would receive a refundable credit, or 'gasoline price rebate,' from that money.

Key Provisions

Taxes large crude oil companies 50 percent on profits made when oil prices are significantly higher than the 2025 average.
Gives most individual taxpayers a refundable credit, or 'gasoline price rebate,' funded by the new oil tax.
Creates a special fund, the 'Protect Consumers from Gas Price Hikes Fund,' to hold the tax money and pay for the rebates.
Provides payments to U.S. territories to ensure their residents also benefit from the rebates.

View on Congress.gov

HR 7960 · 119th Congress · March 17, 2026 · AI Summary by gemini-2.5-flash · 10/10

Big Oil Windfall Profits Tax Act

What Would Change

Key Provisions

Lobbying Activity