Windfall Profit Tax Act
The Crude Oil Windfall Profits Tax Act of 1980 (PL96-223) established an excise tax on domestic crude oil. President Jimmy Carter signed it on April 2, 1980. It was repealed in 1988.
Other People Are Reading
-
History
-
Rep. Al Ullman, an Oregon Democrat, proposed HR 3919 on May 3, 1979. The House approved an amended version on June 28, 1979. The Senate approved its own version on Dec. 17, 1979. After three months of negotiations, President Carter signed the final bill on April 2, 1980.
Purpose
-
One projected use was financing tax credits for alternative fuels. It produced $80 billion in gross revenue for the federal government from 1980 to 1988, not the projected $393 billion.
-
Categories
-
The law divided oil into 1) domestic oil from a "stripper well" (one nearing the end of its productive life) and the Naval Petroleum Reserve; 2) oil found after 1978, heavy oil, and oil produced in excess of base level production; and 3) all other domestic oil, which was exempt from the tax.
Repeal
-
The law was repealed by the Omnibus Trade and Competitiveness Act of 1988 after opponents said it was a competitive burden on the oil industry, generated little revenue and encouraged dependence upon foreign oil.
-
