A bill to clarify the intent of Congress with respect to the exemption of the economic interests of State and local governments from the crude oil windfall profit tax.

Amends the Internal Revenue Code to revise the definition of "producer," for purposes of the windfall profit tax, to assign to parties cost recovery oil (amounts of crude oil used for reimbursement, pursuant to any agreement with another party, for oil or gas development costs) in accordance with their proportion in net profits. Excludes from gross income and treats as paid, for purposes of the net income limitation on windfall profit, cost recovery oil covered by such an agreement.