In an effort to help alleviate the struggles of the U.S. energy industry amid the COVID-19 pandemic, U.S. Rep. Michael Burgess (R-TX) on July 13 sponsored the Save American Vital Energy (SAVE) Jobs Act.
H.R. 7579, if enacted, would assist the American energy sector in retaining jobs during challenging economic times, such as during a public health emergency. The measure is cosponsored by five Republicans, including U.S. Rep. Bill Flores of Texas.
“This pandemic has affected more than Americans’ health,” Rep. Burgess said. “America’s energy independence and position of global leadership in energy is being threatened by COVID-19. This legislation will help energy producers continue to pay their workers and invest in the future by removing barriers placed by the federal government.”
H.R. 7579 includes seven provisions that would reduce the burden of federal taxes and regulations on domestic energy production. Regarding taxes, the bill would extend the 45Q tax credit for Carbon Capture, Utilization, and Storage (CCUS) projects; suspend the capitalization rules for certain inventory costs; provide deposit relief for certain excise fuel taxes; and increase the intangible drilling costs deduction, according to a bill summary provided by Rep. Burgess’ office.
The regulatory provisions would provide lease extensions on federal lands; royalty relief for producers on federal lands and in federal waters; and delay the Federal Oil and Gas Training 2016 Valuation Rule released by the U.S. Office of Natural Resources Revenue, according to the summary, which notes that each proposed provision would expire within a year of enactment.
The legislation has been referred for consideration to both the U.S. House Ways and Means Committee and the U.S. House Natural Resources Committee.