S.Amdt. 3624

1. Adds SEC. __. TEMPORARY WINDFALL PROFITS TAX; HOUSEHOLD REBATE on page 253, between lines 19 and 20

   Adds a sectionPrinted page

   Inserted: SEC. __. TEMPORARY WINDFALL PROFITS TAX; HOUSEHOLD REBATE.

   Inserted: (a) Temporary Windfall Profits Tax.--

   Inserted: (1) 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 50 percent of the windfall profit from all barrels of taxable crude oil removed from the property during any taxable year beginning in 2006.

   Inserted: "(b) 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.

   Inserted: "(c) 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.

   Show 41 more inserted paragraphsShow less

   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.

   Inserted: "(b) Removal Price.--For purposes of this chapter--

   Inserted: "(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.

   Inserted: "(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.

   Inserted: "(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.

   Inserted: "(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--

   Inserted: "(A) such oil shall be treated as removed on the day such manufacture or conversion begins, and

   Inserted: "(B) the removal price shall be the constructive sales price for purposes of determining gross income from the property under section 613.

   Inserted: "(5) Property.--The term 'property' has the meaning given such term by section 614.

   Inserted: "(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.

   Inserted: "(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.

   Inserted: "(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.

   Inserted: "(d) Definitions.--For purposes of this chapter--

   Inserted: "(1) Producer.--The term 'producer' means the holder of the economic interest with respect to the crude oil.

   Inserted: "(2) Crude oil.--

   Inserted: "(A) In general.--The term 'crude oil' includes crude oil condensates and natural gasoline.

   Inserted: "(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)).

   Inserted: "(3) Barrel.--The term 'barrel' means 42 United States gallons.

   Inserted: "(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.

   Inserted: "(f) Regulations.--The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this chapter.".

   Inserted: (2) 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:

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

   Inserted: (3) 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:

   Inserted: "(6) The windfall profit tax imposed by section 5896.".

   Inserted: (4) Effective date.--The amendments made by this subsection shall apply to any taxable year beginning in 2006.

   Inserted: (b) Household Rebate.--

   Inserted: (1) In general.--Subchapter B of chapter 65 of the Internal Revenue Code of 1986 (relating to rules of special application in the case of abatements, credits, and refunds) is amended by adding at the end the following new section:

   Inserted: "SEC. 6430. HOUSEHOLD REBATE.

   Inserted: "(a) General Rule.--Except as otherwise provided in this section, each individual shall be treated as having made a payment against the tax imposed by chapter 1 for the taxable year beginning in 2006 in an amount equal to $450.

   Inserted: "(b) Remittance of Payment.--The Secretary shall remit to each taxpayer the payment described in subsection (a) not later than June 1, 2006.

   Inserted: "(c) Certain Persons Not Eligible.--This section shall not apply to--

   Inserted: "(1) any taxpayer who did not have any adjusted gross income for the preceding taxable year or whose adjusted gross income for such preceding taxable year exceeded $40,000,

   Inserted: "(2) any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for the taxable year beginning in 2006,

   Inserted: "(3) any estate or trust, or

   Inserted: "(4) any nonresident alien individual.".

   Inserted: (2) Conforming amendment.--Section 1324(b)(2) of title 31, United States Code, is amended by inserting before the period ", or from section 6430 of such Code".

   Inserted: (3) Clerical amendment.--The table of sections for subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

   Inserted: "Sec. 6430. Household rebate.".

   Inserted: (4) Effective date.--The amendments made by this subsection shall take effect on the date of the enactment of this Act.

   Original wording

   On page 253, between lines 19 and 20, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed