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Colorado lawmakers propose raising tax on oil and gas stock buybacks
ColoradoBiz Staff //May 21, 2026//
Deposit Photos
Deposit Photos
Colorado lawmakers propose raising tax on oil and gas stock buybacks
ColoradoBiz Staff //May 21, 2026//
In Brief:
- Senate Democrats introduce tax bill on buybacks
- Taxing Buybacks from Big Oil Windfalls Act named
- Senator Michael Bennet leads Colorado effort
- Advocacy groups back higher buyback tax proposal
Senate Democrats introduced legislation that would increase the excise tax on stock buybacks by large oil and gas companies from 1% to 25% amid rising gasoline prices.
Supporters of the proposal said the measure is intended to discourage oil and gas companies from using higher revenues for shareholder buybacks during periods of elevated fuel prices and instead encourage reinvestment in energy production and jobs.
The legislation, titled the Taxing Buybacks from Big Oil Windfalls Act, was introduced by Colorado Sen. Michael Bennet, Senate Democratic Leader Chuck Schumer of New York and Sen. Ron Wyden of Oregon.
“President Trump’s reckless war with Iran has pushed gas prices to record highs in Colorado and across the country, and consumers are paying the price,” Bennet said in a statement. “The last thing oil and gas companies should be doing with these windfall profits is rewarding their shareholders while working families struggle between filling up the gas tank or buying the week’s groceries.”
According to the announcement, large oil and gas firms conducted more than $100 billion in stock buybacks following Russia’s invasion of Ukraine in 2022. Supporters of the legislation said Americans have spent $45 billion more on gasoline and diesel since the conflict involving Iran began, compared with the previous year.
Several advocacy organizations, including Americans for Tax Fairness, the League of Conservation Voters, the Natural Resources Defense Council and the Sierra Club, backed the proposal.
The legislation comes as fuel prices and global energy markets remain under pressure from international conflicts and ongoing concerns about supply disruptions.
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