Oil tax rebated directly to taxpayers quarterly, phased out for high earners.

What it does

This bill imposes a federal excise tax on crude oil when prices exceed a 2025 baseline, set at 50% of the price premium per barrel. Oil companies extracting or importing more than 300,000 barrels daily pay the tax quarterly. All revenue flows into a new "Protect Consumers from Gas Hikes Fund," which is then distributed back to individual taxpayers as quarterly rebates on their tax returns, phased out for higher earners. The rebate is larger for joint filers and requires valid Social Security numbers to claim.

Why we flagged it

The bill's core mechanism is a targeted excise tax on crude oil producers when prices exceed a baseline, with 100% of revenue returned to taxpayers as rebates. This is a direct wealth transfer from oil companies to citizens, structured as a tax-and-rebate system rather than a simple price control.

What the text implies

• The rebate amount is determined quarterly by the Secretary based on revenues and eligible individuals, creating administrative discretion over per-person payouts and potential volatility in rebate size.
• Joint filers receive 150% of the rebate amount, creating a marriage incentive and potentially advantaging dual-income households over single filers.
• The tax applies only to covered taxpayers (>300,000 barrels daily), potentially exempting smaller independent producers and concentrating the tax burden on major integrated oil companies.
• Possession of U.S. territories receive separate payments to ensure tax parity, adding administrative complexity and potential for disputes over calculation methodology.
• The identification number requirement (valid SSN) may exclude undocumented immigrants and some military spouses from rebates, creating a hidden eligibility barrier.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary citizens receive direct quarterly rebates funded by a tax on oil producers' windfall profits above a 2025 baseline. The rebate structure is progressive (phased out for higher incomes) and benefits joint filers more generously, directing resources toward lower- and middle-income households. Oil companies absorb the tax cost, not consumers.

Who stands to gain

• individual taxpayers (rebate recipients)
• lower- and middle-income households (progressive phase-out)

Named in the bill

Internal Revenue Service, Department of Treasury, Covered taxpayers (oil producers/importers >300,000 barrels/day), Brent crude oil (price benchmark), U.S. territories with mirror code tax systems, Social Security Administration

Where it stands

27 cosponsors: 27 Democrats.

• Mar 17, 2026 — Introduced · Congress.gov: “Introduced in House”
• Mar 17, 2026 — Referred to House Committee on Ways and Means · Congress.gov: “Referred to the House Committee on Ways and Means”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

2 lobbying clients named this bill on 2 disclosure filings across 1 quarter, Jun 2026 to Jun 2026. Those filings disclosed $1,550,000 in lobbying spend. A filing names 41 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 41% of bills with at least one filing.

Ro Khanna, the sponsor, reported $0 in PAC receipts in the 2026 cycle.

• Phillips 66 — $1,320,000 on 1 filing
• League of Conservation Voters — $230,000 on 1 filing

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.