June 26, 2025

Warren, Schumer, Wyden, Whitehouse Demand Explanation from Big Oil Corporations Lobbying for Giveaways at Expense of American Families

Senate Republicans have included a $1 trillion loophole for Big Oil in “big, beautiful bill” that would allow massive corporations to avoid paying federal taxes despite earning billions. 

“Congress should not raise energy prices for working families to deliver handouts to Big Oil.”

Text of Letters to Big Oil Companies (PDF)

Washington, D.C. – U.S. Senators Elizabeth Warren (D-Mass.), Ron Wyden (D-Ore.), Ranking Member of the Senate Finance Committee, Sheldon Whitehouse (D-R.I.), Ranking Member of the Senate Environmental Public Works Committee, and Chuck Schumer (D-N.Y.), Senate Minority Leader, pushed Big Oil companies ConocoPhillips and Ovintiv Inc. (Ovintiv) on their companies’ lobbying efforts to win a $1.1 billion tax loophole in President Trump’s “Big Beautiful Bill,” leaving middle-class families stuck with higher energy costs. 

The Inflation Reduction Act of 2022 imposed a corporate alternative minimum tax (CAMT) on the nation’s wealthiest companies, requiring companies reporting over $1 billion in annual profits to pay at least 15% of those profits in taxes. Section 70523 of the Senate Republicans’ reconciliation bill would add a loophole to CAMT for Big Oil. If enacted, this provision would reduce or even eliminate tax liabilities for oil and gas companies under CAMT, allowing some to pay no federal income taxes whatsoever.

“Even after the IRA’s passage, corporations lobbied furiously to weaken CAMT as much as possible, and Senate Republicans are now close to delivering on one of Big Oil’s key requests by granting the industry a huge loophole,” wrote the senators.

Senate Republicans are paying for this handout by cutting clean energy tax credits and vital energy programs. Experts have said the Republican bill would contribute to “higher electricity costs for consumers,” adding to already too-high utility bills. Households are at risk of losing over $2,200 in savings per year on utility bills.

“Adding this tax break for Big Oil to the reconciliation package is especially insulting since Senate Republicans are trying to pay for this handout with cuts to other programs that would end up raising energy prices for everyday Americans,” wrote the senators. “Congress should not raise energy prices for working families to deliver handouts to Big Oil.”

The senators are pushing ConocoPhillips and Ovintiv Inc. for answers on their involvement in lobbying for this handout, with responses due by July 9, 2025.

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