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# Summary of H.R. 7960 — Big Oil Windfall Profits Tax Act This bill imposes a new federal excise tax on crude oil extracted or imported by major oil companies, with revenues returned to individual taxpayers through rebates. The tax applies to covered oil companies that extracted or imported an average of more than 300,000 barrels per day in 2025, and equals 50 percent of the amount by which the average quarterly price of Brent crude oil exceeds the 2025 baseline price, adjusted annually for inflation. The tax takes effect on January 1, 2026, with companies having until September 30, 2026, to pay taxes owed on the first two quarters of 2026. Revenue from the windfall profits tax flows into a new "Protect Consumers from Gas Hikes Fund" and is distributed back to eligible U.S. individuals as quarterly gasoline price rebates. Most taxpayers receive an equal rebate amount each quarter, while joint filers receive 150 percent of the individual amount. Higher-income earners face a phase-out, with the credit reduced by 5 percent for income exceeding $75,000 (single), $112,500 (head of household), or $150,000 (joint filers). U.S. territories with income tax systems mirroring federal law also receive payments to offset revenue losses.

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