To impose a temporary windfall profits tax on crude oil and to use the proceeds of the tax collected to fund programs under the Low-Income Energy Assistance Act of 1981 through a trust fund.

SA 2626. Mr. REED (for himself, Mr. Kennedy, Mr. Schumer, Mr. Kohl,
Mr. Rockefeller, Mr. Kerry, Mr. Carper, Mr. Leahy, Mr. Dayton, Mr.
Lieberman, and Ms. Stabenow) proposed an amendment to the bill S. 2020,
to provide for reconciliation pursuant to section 202(b) of the
concurrent resolution on the budget for fiscal year 2006; as follows:

At the end of title IV add the following:

SEC. 410. TEMPORARY WINDFALL PROFITS TAX.

(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:

``CHAPTER 56--TEMPORARY WINDFALL PROFITS ON CRUDE OIL

``Sec. 5896. Imposition of tax.
``Sec. 5897. Windfall profit; etc.
``Sec. 5898. Special rules and definitions.

``SEC. 5896. IMPOSITION OF TAX.

``(a) In General.--In addition to any other tax imposed
under this title, there is hereby imposed on any applicable
taxpayer an excise tax in an amount equal to the applicable
percentage of the windfall profit of such taxpayer for any
taxable year beginning in 2005.
``(b) Applicable Taxpayer.--For purposes of this chapter,
the term `applicable taxpayer' means, with respect to
operations in the United States--
``(1) any integrated oil company (as defined in section
291(b)(4)) which has an average daily worldwide production of
crude oil of at least 500,000 barrels for the taxable year.
``(c) Applicable Percentage.--For purposes of subsection
(a), the applicable percentage shall be determined by the
Secretary such that the resulting increase in

[[Page S13219]]

revenues in the Treasury equals $2,920,000,000.

``SEC. 5897. WINDFALL PROFIT; ETC.

``(a) General Rule.--For purposes of this chapter, the term
`windfall profit' means the excess of the adjusted taxable
income of the applicable taxpayer for the taxable year over
the reasonably inflated average profit for such taxable year.
``(b) Adjusted Taxable Income.--For purposes of this
chapter, with respect to any applicable taxpayer, the
adjusted taxable income for any taxable year is equal to the
taxable income for such taxable year (within the meaning of
section 63 and determined without regard to this
subsection)--
``(1) increased by any interest expense deduction,
charitable contribution deduction, and any net operating loss
deduction carried forward from any prior taxable year, and
``(2) reduced by any interest income, dividend income, and
net operating losses to the extent such losses exceed taxable
income for the taxable year.

In the case of any applicable taxpayer which is a foreign
corporation, the adjusted taxable income shall be determined
with respect to such income which is effectively connected
with the conduct of a trade or business in the United States.
``(c) Reasonably Inflated Average Profit.--For purposes of
this chapter, with respect to any applicable taxpayer, the
reasonably inflated average profit for any taxable year is an
amount equal to the average of the adjusted taxable income of
such taxpayer for taxable years beginning during the 2000-
2004 taxable year period (determined without regard to the
taxable year with the highest adjusted taxable income in such
period) plus 10 percent of such average.

``SEC. 5898. SPECIAL RULES AND DEFINITIONS .

``(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.
``(b) Records and Information.--Each taxpayer liable for
tax under section 5896 shall keep such records, make such
returns, and furnish such information 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) Crude Oil.--The term `crude oil' includes crude oil
condensates and natural gasoline.
``(e) Businesses Under Common Control.--For purposes of
this chapter, all members of the same controlled group of
corporations (within the meaning of section 267(f)) and all
persons under common control (within the meaning of section
52(b) but determined by treating an interest of more than 50
percent as a controlling interest) shall be treated as 1
person.
``(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:

``Chapter 56. Temporary Windfall Profits on Crude Oil.''.

(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 Trust Fund.--
(1) In general.--Subchapter A of chapter 98 of the Internal
Revenue Code of 1986 (relating to trust fund code) is amended
by adding at the end the following new section:

``SEC. 9511. LOW-INCOME HOME ENERGY ASSISTANCE TRUST FUND.

``(a) Creation of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
`Low-Income Home Energy Assistance Trust Fund', consisting of
any amount appropriated or credited to the Trust Fund as
provided in this section or section 9602(b).
``(b) Transfers to Trust Fund.--There are hereby
appropriated to the Low-Income Home Energy Assistance Trust
Fund amounts equivalent to the increased revenues received in
the Treasury as the result of the amendment made by section
410(a) of the Tax Relief Act of 2005.
``(c) Expenditures From Trust Fund.--Amounts in the Low
Income Home Energy Assistance Trust Fund not to exceed
$2,920,000,000 shall be available for fiscal year 2006, as
provided by appropriation Acts, to carry out the program
under the Low-Income Home Energy Assistance Act of 1981
through the distribution of 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), but only if not
less than $1,880,000,000 has been appropriated for such
program for such fiscal year.''.
(2) Clerical amendment.--The table of sections for such
subchapter is amended by adding at the end the following new
item:

``Sec. 9511. Low-Income Home Energy Assistance Trust Fund.''.

(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).--The amendments made by subsection (d)
shall take effect on the date of the enactment of this Act.
______