H.R. 034 | Gas Prices Relief Act of 2026

[Brink]

119th CONGRESS
2nd Session
H.R. 034

To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday.

IN THE SENATE OF THE UNITED STATES
Q2, 2026
Dr. Williams, Mr. Storm, and Ms. O'Hare (for themselves and others with thanks to Mr. O'Halleran and Mr. Whitehouse) introduced the following bill; 

A BILL
To amend the Internal Revenue Code of 1986 to provide a gasoline tax holiday and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. Short title.

This Act may be cited as the “Gas Prices Relief Act of 2026”.

SEC. 2. 2026 gasoline tax holiday.

(a) In general.—In the case of gasoline removed, entered, or sold on or after the date of the enactment of this Act and before January 1, 2027—

(1) the rate of tax under section 4081(a)(2)(A)(i) of the Internal Revenue Code of 1986 shall be zero; and

(2) the Leaking Underground Storage Tank Trust Fund financing rate under section 4081(a)(2) of such Code shall not apply to gasoline to which the rate under paragraph (1) applies.

(b) Transfers to Trust Fund.—

(1) IN GENERAL.—The Secretary of the Treasury shall transfer from the general fund to the Highway Trust Fund established under section 9503(a) of the Internal Revenue Code of 1986 and the Leaking Underground Storage Tank Trust Fund established under section 9508(a) of such Code amounts equal to the reduction in amounts credited (but for this subsection) to each such Trust Fund by reason of subsection (a).

(2) COORDINATION RULES.—

(A) LEAKING UNDERGROUND STORAGE TANK TRUST FUND.—Amounts transferred to the Leaking Underground Storage Tank Trust Fund under paragraph (1) shall be treated for purposes of sections 9503(b)(1) and 9508(b)(2) of such Code as taxes received in the Treasury under section 4081 of such Code attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(B) HIGHWAY TRUST FUND.—Amounts transferred to the Highway Trust Fund under paragraph (1) shall be treated for purposes of section 9503(b)(1) of such Code as taxes received in the Treasury under section 4081 of such Code which are not attributable to the Leaking Underground Storage Tank Trust Fund financing rate.

(c) Benefits of tax reduction should be passed on to consumers.—

(1) It is the policy of Congress that—

(A) consumers immediately receive the benefit of the reduction in taxes resulting from the application of subsection (a); and

(B) transportation motor fuels producers and other dealers take such actions as necessary to reduce transportation motor fuels prices to reflect such reduction.

(2) ENFORCEMENT.—The Secretary may use all applicable authorities to ensure that the benefit of the reduction in taxes resulting from the application of subsection (a) is re

SEC. 3 Windfall profits tax.

(a) In general.—Subtitle E of the Internal Revenue Code of 1986 is amended by adding at the end thereof the following new chapter:
“CHAPTER 56—WINDFALL PROFITS ON CRUDE OIL

“Sec. 5896. Imposition of tax.
“Sec. 5897. Definitions and special rules.

“SEC. 5896. Imposition of tax.
“(a) In general.—In addition to any other tax imposed under this title, in each calendar quarter there is hereby imposed on any covered taxpayer an excise tax at the rate determined under subsection (b) on—

“(1) each barrel of taxable crude oil extracted by the taxpayer within the United States and removed from the property of such taxpayer during the calendar quarter, and

“(2) each barrel of taxable crude oil entered into the United States during the calendar quarter by the taxpayer for consumption, use, or warehousing.

“(b) Rate of tax.—

“(1) IN GENERAL.—The rate of tax imposed by this section on any barrel of taxable crude oil for any calendar quarter is the product of—

“(A) 50 percent, and

“(B) the excess (if any) of—

“(i) the average price of a barrel of Brent crude oil over the covered calendar quarter, over

“(ii) the average price of a barrel of Brent crude oil over the period beginning on January 1, 2015, and ending on December 31, 2019.

“(2) INFLATION ADJUSTMENT.—

“(A) IN GENERAL.—In the case of a calendar quarter beginning in any taxable year beginning after 2026, the amount determined under paragraph (1)(B)(ii) shall be increased by an amount equal to—

“(i) such dollar amount, multiplied by

“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘2025’ for ‘2016’ in subparagraph (A)(ii) thereof.

“(B) ROUNDING.—If any dollar amount, after being increased under subparagraph (A), is not a multiple of $0.50, such dollar amount shall be rounded to the next lowest multiple of $0.01.

“(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.

“SEC. 5897. Definitions and special rules.
“(a) Definitions.—For purposes of this chapter—

“(1) COVERED TAXPAYER.—

“(A) IN GENERAL.—The term ‘covered taxpayer’ means, with respect to any calendar quarter, any taxpayer if—

“(i) the average daily number of barrels of taxable crude oil extracted and imported by the taxpayer for calendar year 2019 exceeded 300,000 barrels, or

“(ii) the average daily number of barrels of taxable crude oil extracted and imported by the taxpayer for the calendar quarter exceeds 300,000.

“(B) AGGREGATION RULES.—All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as one person for purposes of paragraph (1).

“(2) TAXABLE CRUDE OIL.—The term ‘taxable crude oil’ includes crude oil, crude oil condensates, and natural gasoline.

“(3) BARREL.—The term ‘barrel’ means 42 United States gallons.

“(4) UNITED STATES.—The term ‘United States’ has the same meaning given such term under section 4612.

“(b) 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.

“(c) 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.

“(d) 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.

“(e) 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. Windfall profit on crude oil”.
(c) Effective date.—

(1) IN GENERAL.—The amendments made by this section shall apply to crude oil removed or entered after December 31, 2021, in calendar quarters ending after such date.

(2) SPECIAL RULE FOR QUARTERS DURING 2026.—In the case of any calendar quarter ending in calendar year 2026, the tax imposed under section 5896 shall not be due before March 31, 2027.

 

PES:

Section two: This section provides for a temporary exemption through 2026 from the excise tax on gasoline (other than aviation gasoline) and from the Leaking Underground Storage Tank Trust Fund financing rate. The Department of the Treasury must transfer from the general fund to the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund amounts resulting from the exemption provided by this bill.

The bill also expresses congressional policy that consumers immediately receive the benefit of this exemption.

Section three: This section imposes an excise tax on the windfall profits of crude oil on taxpayers who extracted and imported more than 300,000 barrels (a barrel equals 42 U.S. gallons) of taxable crude oil (i.e., crude oil, crude oil condensates, and natural gasoline) in 2019, or who extracted and imported that amount in the current calendar quarter.

Edited December 23, 2024 by Brink

[Brink]

The House shall come to order to debate this legislation for a period of 72 hours.

[Brink]

Representative Stephanie Bice (OK-5, Main Street Partnership)

Mr. Speaker, 

I move to strike Section 3 from this legislation. While we should certainly support giving motorists critical tax relief, this bill raises taxes on consumers over the long term because the permanent windfall tax provisions will be passed along to hard working American families forever.

I yield.

[Brink]

The House shall come to a vote on the proposed amendment to the legislation for a period of 24 hours.

[Tuna]

1 hour ago, Brink said:

The House shall come to a vote on the proposed amendment to the legislation for a period of 24 hours.

New Dems: Nay

[Goldie]

Main Street: Aye

[Brink]

The amendment failed 221-212. 

[Brink]

The House shall vote on this legislation for a period of 36 hours.

[Storm]

Progressives:Aye

[Abrams]

Nay.

[jakeakins]

blue dogs - aye

[Goldie]

Main Street: Nay

[Brink]

The House has passed this legislation in a 221-212 vote and it will now be sent to the Senate.