Taxing Buybacks from Big Oil Windfalls Act

This Act may be cited as the “Taxing Buybacks from Big Oil Windfalls Act”.

Section 4501 of the Internal Revenue Code of 1986 is amended by redesignating subsection (f) as subsection (g) and by inserting after subsection (e) the following new subsection:

“(f) Application to large oil and gas companies.—

(1) In general.— In the case of a covered corporation which is an applicable corporation for the taxable year, subsection (a) shall be applied by substituting “25 percent” for “1 percent”.

(2) Applicable corporation.— For purposes of this subsection—

(A) In general.— The term applicable corporation means, with respect to any taxable year, any corporation if— For purposes of clause (i), rules similar to the rules of paragraphs (2) and (3) of section 448(c) shall apply.

(i) the average annual gross receipts of such corporation for the 3-taxable-year period ending with the taxable year which precedes such taxable year equals or exceeds $1,000,000,000, and

(ii) such corporation is primarily engaged in 1 or more oil or natural gas trades or businesses during the taxable year.

(B) Oil or natural gas trade or business.— The term oil or natural gas trade or business means any trade or business that consists of one or more of the following:

(i) The production of oil or natural gas.

(ii) The refining of oil or natural gas.

(iii) The processing of oil or natural gas.

(iv) The transportation of oil or natural gas.

(v) The distribution of oil or natural gas.

(3) Application of subsection.—

(A) In general.— This subsection shall apply to repurchases of stock made—

(i) after the date of the enactment of this subsection, and

(ii) before the first day of the first month beginning after the gasoline price requirement of subparagraph (B) is met.

(B) Gasoline price requirement.— The gasoline price requirement of this subparagraph is met if the weekly retail price of all formulations of regular gasoline (as determined by the Energy Information Administration of the Department of Energy) is less than $2.937 per gallon for each week occurring during any 5-consecutive week period ending after the date of the enactment of this subsection.

(C) Special rule.— For purposes of applying subsection (c)(3) to any taxable year which includes a period to which this subsection applies and a period to which this subsection does not apply, the amount of the reduction determined under such subsection for such taxable year shall be applied—

(i) by reducing stock repurchased during the period this subsection does not apply in the amount which bears the same ratio to the total amount of the reduction so determined for such taxable year as—

(I) the number of days in the taxable year during such period, bears to

(II) the total number of days in such taxable year, and

(ii) by reducing stock repurchased during the period this subsection applies by the excess (if any) of the total amount of the reduction so determined for such taxable year over the amount of the reduction determined under clause (i).”.