Iran War Oil Crisis Windfall Profits Tax Act

Sponsor: Brad Sherman (Democratic-CA)May 13, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on Ways and Means.

New tax on big oil's excess profits would fund gas rebates for Americans during Iran War crisis.

This bill would create a new tax on large oil companies, taking 100% of the amount by which crude oil prices exceed $75 per barrel. The money collected from this tax would go directly back to most individual taxpayers as a refundable rebate. This system would continue until three conditions are met. First, the President declares an end to hostilities with Iran. Second, the Strait of Hormuz is fully reopened. Third, the price of oil drops below $75 per barrel.

What Would Change

Today, there is no specific federal tax on high crude oil profits that directly funds rebates for individuals. If this bill passes, large oil companies would pay a tax, taking 100% of the amount by which crude oil prices exceed $75 per barrel. Eligible individuals would then receive a refundable tax credit, or 'gasoline price rebate,' from these funds, which would continue until specific conditions related to the Iran conflict and oil prices are met.

Key Provisions

Imposes a new tax on large oil companies, taking 100% of the amount by which crude oil prices exceed $75 per barrel.
Creates a refundable tax credit, or 'gasoline price rebate,' for most individual taxpayers.
Ends the tax and rebates when the President declares peace with Iran, the Strait of Hormuz is fully open, and oil prices fall below $75 per barrel.
Establishes the 'Iran War Gasoline Price Relief Fund' to hold the tax money and pay for the rebates.
Requires the Treasury Department to determine rebate amounts every three months based on tax collections and the number of eligible people.
Mandates the Treasury Department to inform taxpayers about how to get their rebates within 30 days of the bill becoming law.

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HR 8803 · 119th Congress · May 13, 2026 · AI Summary by gemini-2.5-flash · 9/10

Iran War Oil Crisis Windfall Profits Tax Act

What Would Change

Key Provisions

Lobbying Activity