S.Amdt. 2373

1. Adds SEC. __. TEMPORARY WINDFALL PROFITS TAX FOR LIHEAP FUNDING wherever appropriate

   Adds a section

   Inserted: SEC. __. TEMPORARY WINDFALL PROFITS TAX FOR LIHEAP FUNDING.

   Inserted: (a) In General.--Subtitle E of the Internal Revenue Code of 1986 (relating to alcohol, tobacco, and certain other excise taxes) is amended by adding at the end thereof the following new chapter:

   Inserted: "CHAPTER 56--TEMPORARY WINDFALL PROFITS ON CRUDE OIL

   Inserted: "Sec. 5896. Imposition of tax.

   Inserted: "Sec. 5897. Windfall profit; removal price; adjusted base price; qualified investment.

   Inserted: "Sec. 5898. Special rules and definitions.

   Inserted: "SEC. 5896. IMPOSITION OF TAX.

   Inserted: "(a) In General.--In addition to any other tax imposed under this title, there is hereby imposed on any integrated oil company (as defined in section 291(b)(4)) an excise tax equal to the amount equal to the applicable percentage of the windfall profit from all barrels of taxable crude oil removed from the property during taxable years beginning in 2005. "(b) Applicable Percentage.--For purposes of subsection (a), the applicable percentage shall be determined by the Secretary such that the resulting revenues in the Treasury are sufficient to meet the expenditure requirements of section ___(d) (relating to appropriations for Low-Income Home Energy Assistance program). "(c) Fractional Part of Barrel.--In the case of a fraction of a barrel, the tax imposed by subsection (a) shall be the same fraction of the amount of such tax imposed on the whole barrel. "(d) Tax Paid by Producer.--The tax imposed by this section shall be paid by the producer of the taxable crude oil.

   Inserted: "SEC. 5897. WINDFALL PROFIT; REMOVAL PRICE; ADJUSTED BASE PRICE.

   Inserted: "(a) General Rule.--For purposes of this chapter, the term 'windfall profit' means the excess of the removal price of the barrel of taxable crude oil over the adjusted base price of such barrel. "(b) Removal Price.--For purposes of this chapter--"(1) In general.--Except as otherwise provided in this subsection, the term 'removal price' means the amount for which the barrel of taxable crude oil is sold. "(2) Sales between related persons.--In the case of a sale between related persons, the removal price shall not be less than the constructive sales price for purposes of determining gross income from the property under section 613. "(3) Oil removed from property before sale.--If crude oil is removed from the property before it is sold, the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613. "(4) Refining begun on property.--If the manufacture or conversion of crude oil into refined products begins before such oil is removed from the property--"(A) such oil shall be treated as removed on the day such manufacture or conversion begins, and "(B) the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613. "(5) Property.--The term 'property' has the meaning given such term by section 614. "(c) Adjusted Base Price Defined.--For purposes of this chapter, the term 'adjusted base price' means $40 for each barrel of taxable crude oil.

   Inserted: "SEC. 5898. SPECIAL RULES AND DEFINITIONS .

   Inserted: "(a) Withholding and Deposit of Tax.--The Secretary shall provide such rules as are necessary for the withholding and deposit of the tax imposed under section 5896 on any taxable crude oil. "(b) Records and Information.--Each taxpayer liable for tax under section 5896 shall keep such records, make such returns, and furnish such information (to the Secretary and to other persons having an interest in the taxable crude oil) with respect to such oil as the Secretary may by regulations prescribe. "(c) Return of Windfall Profit Tax.--The Secretary shall provide for the filing and the time of such filing of the return of the tax imposed under section 5896. "(d) Definitions.--For purposes of this chapter--"(1) Producer.--The term 'producer' means the holder of the economic interest with respect to the crude oil. "(2) Crude oil.--"(A) In general.--The term 'crude oil' includes crude oil condensates and natural gasoline. "(B) Exclusion of newly discovered oil.--Such term shall not include any oil produced from a well drilled after the date of the enactment of the chapter, except with respect to any oil produced from a well drilled after such date on any proven oil or gas property (within the meaning of section 613A(c)(9)(A)). "(3) Barrel.--The term 'barrel' means 42 United States gallons. "(e) Adjustment of Removal Price.--In determining the removal price of oil from a property in the case of any transaction, the Secretary may adjust the removal price to reflect clearly the fair market value of oil removed. "(f) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.". (b) Clerical Amendment.--The table of chapters for subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

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   Inserted: "Chapter 56. Temporary Windfall Profit on Crude Oil.".

   Inserted: (c) Deductibility of Windfall Profit Tax.--The first sentence of section 164(a) of the Internal Revenue Code of 1986 (relating to deduction for taxes) is amended by inserting after paragraph (5) the following new paragraph: "(6) The windfall profit tax imposed by section 5896.". (d) Low Income Home Energy Assistance Program Appropriations.--With respect to fiscal year 2006, in addition to amounts appropriated under any other provision of law, for making payments under title XXVI of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 8621 et seq.), $2,920,000,000, shall be appropriated to distribute funds to all the States in accordance with section 2604 of that Act (42 U.S.C. 8623) (other than subsection (e) of such section). (e) Effective Dates.--(1) In general.--Except as provided in paragraph (2), the amendments made by this section shall apply to taxable years beginning in 2005. (2) Subsection (d).--Subsection (d) shall take effect on the date of the enactment of this Act.

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