Iran War Oil Crisis Windfall Profits Tax Act
To amend the Internal Revenue Code of 1986 to impose a windfall profits excise tax on crude oil and to rebate the tax collected back to individual taxpayers until the President declares that all hostilities with Iran have ceased, the Strait of Hormuz is fully reopened, and the price of oil drops below $75 per barrel.
This bill proposes to impose a special tax on the profits made by oil companies when oil prices rise sharply, known as a windfall profits tax. The tax would only be in effect if there is ongoing conflict with Iran and if the price of oil stays above $75 per barrel. The money collected from this tax would then be given back to individual taxpayers as rebates.
The bill would primarily affect oil companies and individual taxpayers. Oil companies would pay the tax on profits made from high oil prices, while individual taxpayers would receive rebates from the tax revenue. This could result in lower prices at the pump for consumers, assuming the rebates are significant enough to offset the impact of high oil prices.
As of May 13, 2026, the bill has just been introduced in the House and referred to the House Committee on Ways and Means. This is the first step in the legislative process, and it means that the bill is now being reviewed by the committee, which will decide whether to advance it for further consideration.
