Iran War Oil Crisis Windfall Profits Tax Act

(a) In general. Subchapter B of chapter 65 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

6436. Gasoline price rebates

(a) In general. In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by subtitle A for each taxable year beginning after December 31, 2025, an amount equal to the sum of the gasoline price rebate amount for calendar quarters beginning in such taxable year.

(b) Gasoline price rebate amount. The term gasoline price rebate amount means, with respect to any taxpayer for any calendar quarter beginning in a taxable year, an amount determined by the Secretary not later than 30 days after the end of such calendar quarter taking into account the number of eligible individuals and the amount of revenues in the Iran War Gasonline Price Relief Fund resulting from the tax imposed by section 5896 for the preceding calendar quarter.

(c) Eligible individual. For purposes of this section, the term eligible individual means any individual other than—

(1) any nonresident alien individual,

(2) any individual who is a dependent of another taxpayer for a taxable year beginning in the calendar year in which the individual’s taxable year begins, and

(3) an estate or trust.

(d) Definitions and special rules

(1) Dependent defined. For purposes of this section, the term dependent has the meaning given such term by section 152.

(2) Credit treated as refundable. The credit allowed by subsection (a) shall be treated as allowed by subpart C of part IV of subchapter A of chapter 1.

(e) Regulations. Not later than 90 days after the date of the enactment of this section, the Secretary shall prescribe such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

(f) Outreach. Not later than 30 days after the date of the enactment of this section, the Secretary shall carry out a robust and comprehensive outreach program to ensure that all taxpayers learn of their eligibility for the credits allowed under this section and are provided assistance in claiming such credits.

(b) Treatment of certain possessions

(1) Payments to possessions with mirror code tax systems. The Secretary of the Treasury shall pay to each possession of the United States which has a mirror code tax system amounts equal to the loss (if any) to that possession by reason of the amendments made by this section. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

(2) Payments to other possessions. The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits (if any) that would have been provided to residents of such possession by reason of the amendments made by this section if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply unless the respective possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to its residents.

(3) Inclusion of administrative expenses. The Secretary of the Treasury shall pay to each possession of the United States to which the Secretary makes a payment under paragraph (1) or (2) an amount equal to the increase (if any) of the administrative expenses of such possession— the amount described in subparagraph (A) shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.

(A) in the case of a possession described in paragraph (1), by reason of the amendments made by this section, and

(B) in the case of a possession described in paragraph (2), by reason of carrying out the plan described in such paragraph, or

(4) Coordination with credit allowed against united states income taxes. No credit shall be allowed against United States income taxes under section 6434 of the Internal Revenue Code of 1986 (as added by this section) to any person—

(A) to whom a credit is allowed against taxes imposed by the possession by reason of the amendments made by this section, or

(B) who is eligible for a payment under a plan described in paragraph (2).

(5) Mirror code tax system. For purposes of this subsection, the term mirror code tax system means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.

(6) Treatment of payments. For purposes of section 1324 of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from a credit provision referred to in subsection (b)(2) of such section.

(7) Secretary of the Treasury. For purposes of this subsection, the term Secretary of the Treasury includes the Secretary’s delegate.

(c) Administrative provisions

(1) Definition of deficiency. Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by striking and 6433 and inserting 6433, and 6434,.

(2) Conforming amendments

(A) Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 6434, after 6433,.

(B) 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:

Sec. 6436. Gasoline price rebates.

(d) Effective date. The amendments made by this section shall apply to taxable years beginning after December 31, 2025.