Crude Oil Windfall Profit Tax Act of 1979

[AI summary unavailable — showing source text] Crude Oil Windfall Profit Tax Act of 1979 - Amends the Internal Revenue Code to impose an excise tax on the windfall profit from taxable crude oil removed during each taxable period. Sets the amount of such tax at: (1) 75 percent of the windfall profit on each barrel of tier 1 oil and tier 2 oil; and (2) 60 percent of such profit on each barrel of tier 3 oil. Defines: (1) tier 1 oil as domestic crude oil which would have been subject to the lower tier ceiling price if the pre- June, 1979 controls had continued; (2) tier 2 oil as domestic crude oil which would have been subject to the upper tier ceiling price if the pre-June, 1979 controls had continued; and (3) tier 3 oil as stripper oil, oil from marginal properties, or other oil which is neither tier 1 or tier 2 oil. Exempts from such windfall tax newly discovered oil, incremental tertiary oil, heavy crude oil, and oil produced on a property after December, 1984, which is in excess of a base level computed according to a specified formula. Defines windfall profit as the excess of the removal price of a barrel of crude oil over the sum of the adjusted base price of such barrel and the amount of the severance tax adjustment compute…