Tax on oil profits funds cash rebates to drivers during Iran crisis

What it does

The bill adds a federal tax on crude oil and petroleum products. The tax applies when oil costs more than $75 per barrel. Money from this tax pays quarterly cash rebates to U.S. taxpayers. The tax stops when Iran hostilities end. It also stops when the Strait of Hormuz reopens. It stops when oil prices fall below $75 per barrel.

Who it affects

U.S. taxpayers receive quarterly cash rebates to help pay for higher gas prices. Oil companies that produce or import oil pay the tax. Independent oil producers making less than 100,000 barrels per day do not pay it.

One thing to notice

The tax only stops when all three conditions happen at once. If any one does not happen, the tax continues.

From the analysis of the bill text, linked under Primary records below.

Where it stands

• May 13, 2026 — Introduced · Congress.gov: “Introduced in House”
• May 13, 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.

Words to know

• rebates — Money paid back to people to help offset higher prices they pay.
• Strait of Hormuz — A narrow waterway between Iran and Oman where much of the world's oil ships pass through.
• hostilities — Fighting or conflict between countries or groups.