Crude Oil Windfall Profit Tax Act

The Crude Oil Windfall Profit Tax Act was a law enacted in the United States in 1980 to tax unexpected profits earned by oil companies from high oil prices. When crude oil prices soared unexpectedly, these companies earned large, unexpected profits—referred to as "windfalls." The law imposed a tax on these excess profits to help the government recover some revenue and to reduce the burden on consumers, aiming to curb excessive profits during times of price spikes. It was designed to be temporary and aimed at maintaining fair pricing and funding energy programs.