New bill would tax big oil profits and mail checks to Americans during Iran conflict

What does this do?

HR 8803 would impose a 100 percent tax on the amount oil companies receive above $75 per barrel during a conflict with Iran. It applies only to companies producing or importing more than 100,000 barrels per day. The tax ends when the president declares fighting has stopped, the Strait of Hormuz is fully open, and oil prices fall below $75 per barrel.

Who does it affect?

Large oil producers and importers operating in the U.S. would pay the tax. Most U.S. residents who file taxes would receive rebate payments, excluding dependents, non-resident foreign nationals, and estates or trusts.

Why does it matter?

Revenue collected would be distributed equally as refundable rebates to eligible taxpayers each quarter, including residents of U.S. territories like Puerto Rico and Guam through a separate process. Large oil companies would face significantly higher operating costs for the duration of the conflict period.

What does it cost, and who pays?

• 100% tax on every dollar above $75/barrel
• $25 tax per barrel if oil sells at $100
• Rebates split equally among eligible filers