[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2782 Introduced in Senate (IS)]
110th CONGRESS
2d Session
S. 2782
To amend the Internal Revenue Code of 1986 to impose a temporary
windfall profit tax on crude oil and transfer the proceeds of the tax
to the Highway Trust Fund, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 13, 2008
Mr. Schumer (for himself and Mr. Brown) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose a temporary
windfall profit tax on crude oil and transfer the proceeds of the tax
to the Highway Trust Fund, 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 ``Recapture Excess Profits and Invest
in Roads and Rail (REPAIR) Act of 2008''.
SEC. 2. 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 25 percent of the windfall profit of such
taxpayer for any taxable year beginning during 2008 or 2009.
``(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)), and
``(2) any other producer or refiner of crude oil with gross
receipts from the sale of such crude oil or refined oil
products for the taxable year exceeding $1,000,000,000.
``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 2003-2007 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 Profit 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) Transfer of Proceeds to Highway Trust Fund.--Section 9503(b)(1)
of the Internal Revenue Code of 1986 (relating to certain taxes) is
amended by striking ``and'' at the end of subparagraph (D), by striking
the period at the end of subparagraph (E) and inserting ``, and'', and
by adding at the end the following new subparagraph:
``(F) section 5896 (relating to windfall profit tax
on crude oil).''.
(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 2008 and 2009.
(2) Subsection (d).--The amendments made by subsection (d)
shall take effect on the date of the enactment of this Act.
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