A bill to amend the Internal Revenue Code of 1954 to repeal the crude oil windfall profit tax on tier 2 oil and tier 3 oil, to phaseout the tax beginning October 1, 1981, and to provide that royalty owners shall be exempt from the tax.

Amends the Internal Revenue Code to exempt tier 1 oil (stripper well oil and oil from an economic interest in a National Petroleum Reserve held by the United States), tier 2 oil (newly discovered, heavy, and incremental tertiary oil), and royalty owners from the crude oil windfall profit excise tax.

Begins the phase-out of such tax on October 1, 1981.