W.A.R. Act Wartime Anti-Profiteering and Relief Act

This Act may be cited as the W.A.R. Act Wartime Anti-Profiteering and Relief Act.

Congress finds the following:

(1) The ongoing armed conflict involving the United States, Israel, And Iran (in this Act referred to as the U.S. Israel–Iran conflict) has contributed to elevated global oil prices and higher gasoline prices for consumers in the United States, with national averages rising and forecasters warning of additional inflationary pressure on transportation and logistics costs.

(2) Natural gas and liquefied natural gas markets are under strain because a significant share of global supply transits or is priced with reference to routes in and around the strait of hormuz, which are directly affected by the U.S Israel–Iran conflict, exposing American households to higher heating and electricity costs.

(3) Increases in energy prices arising from the U.S Israel–Iran conflict have cascading effects on the costs of housing, food, and borrowing, disproportionately burdening middle-income households who are ineligible for many low-income assistance programs but lack sufficient savings to absorb sustained price shocks.

(4) Bad actors, including certain market participants in fuel, home heating, and consumer staples, have both the incentive and opportunity to engage in unjustified price increases during the U.S Israel–Iran conflict, exacerbating hardship for American families.

It is the sense of Congress that the United States is experiencing a war-related energy cost emergency directly attributable to the U.S.–Israel–Iran conflict that warrants targeted, temporary relief for middle-income households and enhanced enforcement against price gouging in essential goods, for the duration of that conflict and its immediate aftermath only.

In this Act:

The term Secretary means the Secretary of the Treasury.

The term middle-income household means, with respect to a taxable year, a taxpayer whose household income is between $80,000 and $160,000.

The term U.S.–Israel–Iran conflict means the armed conflict beginning on or about February 2026 in which the United States is materially engaged in hostilities in support of Israel against Iran and associated forces, as identified in public determinations by the President pursuant to the War Powers Resolution.

The term designated U.S.–Israel–Iran war energy emergency period means the period—

(A) beginning on the date of enactment of this Act; and

(B) ending on the earlier of—

(i) The date that is 365 days after the effective date of a ceasefire or other agreement formally terminating active hostilities in the U.S Israel–Iran conflict, as certified by the President; or

(ii) The date on which the secretary of energy and the secretary jointly certify to congress that energy prices attributable to the U.S Israel–Iran conflict have materially normalized.

In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by chapter 1 of the Internal Revenue Code of 1986 for each taxable year beginning in a designated U.S.–Israel–Iran war energy emergency period an amount equal to the war inflation credit determined under this section.

The war inflation credit for any taxable year shall be an amount determined by the Secretary that is reasonably calculated to offset average increases in commuting, grocery, and utility costs incurred by middle-income households as a direct or indirect result of the U.S.–Israel–Iran conflict, taking into account family size and regional cost variations.

An individual is eligible for the credit under this section if—

(1) such individual is a middle-income household for the taxable year; and

(2) neither such individual nor such individual’s spouse (in the case of a joint return) is a nonresident alien individual.

The credit allowed under this section—

(1) shall be treated as a refundable credit; and

(2) shall be allowed in addition to any other credit allowed under the Internal Revenue Code of 1986, subject to such coordination rules as the Secretary may prescribe to prevent duplication of benefits for the same costs.

The credit under this section shall be reduced ratably and ultimately terminated for taxable years beginning after the first taxable year that begins after both of the following conditions have been met:

(A) The president has notified to congress that a ceasefire or other agreement has formally terminated active hostilities in the U.S Israel–Iran conflict.

(B) The secretary of energy and the secretary have jointly certified to congress that average national retail prices of gasoline and residential electricity have remained below specified trigger thresholds for not fewer than 180 consecutive days and that such normalization is not materially threatened by ongoing hostilities related to the U.S Israel–Iran conflict.

The Secretary shall publish notice of any phase-out or termination under paragraph (1) in the Federal Register and on an appropriate public website.

During any designated U.S.–Israel–Iran war energy emergency period, it shall be an unfair or deceptive act or practice under the Federal Trade Commission Act for any covered entity to sell or offer for sale covered goods at a price that—

(1) represents a grossly excessive increase over the average price of such goods during the 60-day period preceding the date of enactment of this Act; and

(2) Is not substantially attributable to additional costs incurred, or reasonably anticipated to be incurred, by the covered entity in connection with the production, distribution, or sale of such goods, including costs reasonably attributable to the U.S Israel–Iran conflict.

The term covered entity means any person, partnership, corporation, or other business entity engaged in the wholesale or retail sale of—

(1) motor fuel, diesel, or other transportation fuels;

(2) home heating fuels, including natural gas, heating oil, and electricity; or

(3) essential consumer staples, including food and basic household necessities, as defined by the Federal Trade Commission.

The term covered goods means any good described in subsection (b).

The Federal Trade Commission shall have authority to enforce section 201 in the same manner, by the same means, and with the same jurisdiction, powers, and duties as though all applicable terms and provisions of the Federal Trade Commission Act were incorporated into and made a part of this Act.

The Attorney General may bring a civil action in an appropriate United States district court to enforce section 201, to seek injunctive relief, civil penalties, and restitution for affected consumers, and to obtain such other relief as the court may deem appropriate.

Nothing in this Act shall be construed to preempt any State law prohibiting price gouging or to limit the authority of any State attorney general to enforce such law.

The Federal Trade Commission may promulgate such rules as are necessary and appropriate to carry out this title, including rules further defining grossly excessive for purposes of section 201(a), specifically in the context of price effects attributable to the U.S.–Israel–Iran conflict.

The Federal Trade Commission (in this section referred to as the Commission) shall conduct a study of the operation and enforcement of State and local price gouging laws during the period of war-related disruptions in energy and essential goods markets caused by the U.S.–Israel–Iran conflict, including—

(1) the extent to which such laws were activated in response to the conflict;

(2) the types of products and services covered, including fuel, home heating, and essential consumer staples;

(3) enforcement actions taken by State and local authorities; and

(4) any observed impacts on consumer welfare, supply availability, and prices.

As part of the study under subsection (a), the Commission shall evaluate whether a permanent Federal baseline standard governing price gouging during declared emergencies would promote consumer protection and market stability, taking into account the diversity of existing State approaches and experience during the U.S.–Israel–Iran conflict.

Not later than 18 months after the date of enactment of this Act, the Commission shall submit to the Committee on Ways and Means and the Committee on Energy and Commerce of the House of Representatives and the Committee on Finance and the Committee on Commerce, Science, and Transportation of the Senate a report—

(1) describing the results of the study conducted under subsection (a); and

(2) setting forth the recommendations described in subsection (b), including any specific legislative or administrative actions the Commission considers appropriate.

All authorities and programs established under this Act, including the war inflation refundable tax credit under section 101, and the prohibitions and enforcement authorities created by sections 201 and 202, shall terminate at the end of the designated U.S.–Israel–Iran war energy emergency period, except as provided in subsection (b).

Any investigation, enforcement action, or proceeding commenced under this Act before the date described in subsection (a) may be continued, and any civil or criminal liability for violations of this Act incurred before such date shall remain in effect until satisfied or discharged.

Nothing in this Act shall be construed to—

(1) limit, impair, or otherwise affect any authority of the President or any Federal agency under the Defense Production Act of 1950, the Federal Trade Commission Act, or any other provision of Federal law to prevent hoarding, accumulation, or other forms of profiteering during an emergency; or

(2) preempt or displace any State or local law prohibiting price gouging or other unfair or deceptive practices during a declared emergency.