H.R. 8214 — W.A.R. Act Wartime Anti-Profiteering and Relief Act

This section establishes a refundable tax credit, the war inflation credit, against income tax under chapter 1 of the Internal Revenue Code for eligible middle-income individuals for taxable years beginning during a designated U.S.–Israel–Iran war energy emergency period. The credit amount, determined by the Secretary of the Treasury, offsets average increases in commuting, grocery, and utility costs incurred by middle-income households as a result of the conflict, taking into account family size and regional cost variations; eligibility requires the individual (and spouse, if filing jointly) not be a nonresident alien. The credit is allowed in addition to other credits (subject to anti-duplication rules) and automatically phases out ratably, then terminates, for taxable years after both (1) presidential notification to Congress of a ceasefire or agreement ending active hostilities and (2) joint certification by the Secretaries of Energy and Treasury that average national retail gasoline and residential electricity prices have remained below specified thresholds for 180 consecutive days without material ongoing threats from the conflict.

This section prohibits price gouging on covered goods by covered entities during any designated U.S.–Israel–Iran war energy emergency period, deeming it an unfair or deceptive act or practice under the Federal Trade Commission Act. Price gouging occurs when a good is sold or offered for sale at a price that represents a grossly excessive increase over the average price during the 60-day period preceding enactment and is not substantially attributable to additional costs incurred or reasonably anticipated by the entity due to the emergency, including costs from the U.S.–Israel–Iran conflict. Covered entities are businesses engaged in wholesale or retail sales 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; and covered goods are those items.

This section establishes enforcement mechanisms for section 201 by (1) granting the Federal Trade Commission (FTC) authority to enforce it under the FTC Act; (2) authorizing the Attorney General to bring civil actions in federal district court seeking injunctive relief, civil penalties, consumer restitution, and other appropriate relief; (3) preserving state laws prohibiting price gouging and state attorneys general authority to enforce them; and (4) directing the FTC to promulgate necessary rules, including to further define “grossly excessive” pricing in the context of the U.S.–Israel–Iran conflict.

This section directs the Federal Trade Commission to conduct a study on the operation and enforcement of state and local price gouging laws during 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; (2) the types of products and services covered, such as fuel, home heating, and essential consumer staples; (3) enforcement actions by state and local authorities; and (4) impacts on consumer welfare, supply availability, and prices. The section further requires the Commission, as part of the study, to evaluate whether a permanent federal baseline standard on price gouging during declared emergencies would promote consumer protection and market stability, considering diverse state approaches and experiences during the conflict. Not later than 18 months after enactment, the Commission must submit a report to the House Committees on Ways and Means and Energy and Commerce and the Senate Committees on Finance and Commerce, Science, and Transportation containing the study results and recommendations, including any legislative or administrative actions deemed appropriate.

This section terminates 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—at the end of the designated U.S.–Israel–Iran war energy emergency period. It authorizes continuation of any investigation, enforcement action, or proceeding commenced before such date and preserves any civil or criminal liability for violations incurred before such date until satisfied or discharged. The section specifies that it does not limit presidential or federal agency authority under the Defense Production Act of 1950, the Federal Trade Commission Act, or other federal laws to prevent hoarding, accumulation, or profiteering during an emergency, nor does it preempt or displace state or local laws prohibiting price gouging or other unfair or deceptive practices during a declared emergency.