U.S. Sen. Bill Cassidy (R-LA) on Tuesday joined several of his Republican colleagues to unveil legislation that would assist the American energy sector in retaining jobs during the COVID-19 pandemic.
Sen. Cassidy is an original cosponsor of the SAVE Jobs Act, S. 4041, with bill sponsor U.S. Sen. John Cornyn (R-TX) and 10 other cosponsors, including U.S. Sens. Shelley Moore Capito (R-WV) and Roger Wicker (R-MS).
“The energy sector is struggling because of this pandemic,” Sen. Cassidy said. “Thousands of Louisianans rely on those good-paying jobs to provide for their families. The SAVE Jobs Act offers targeted relief to an industry that needs support to prevent a full collapse.”
The bill aims to promote liquidity and flexibility for domestic energy companies to help them maintain their workforce through the pandemic’s economic downturn.
If enacted, S. 4041 would allow more carbon capture projects to break ground by extending the commence construction window for the 45Q tax credit by one year, according to a bill summary provided by Sen. Cassidy’s office.
Among several provisions, S. 4041 also would permit energy companies to build liquidity by suspending certain capitalization rules; reducing the required deposit of certain motor fuel excise taxes paid every two weeks from 95 percent to 25 percent; and allow 100 percent of the cost of intangible drilling costs in 2020 to be expensed, according to the summary.
“This bill will support our energy sector through this tumultuous period so workers can get paid and support their families,” said Sen. Capito. “I’m particularly pleased to include the extension of the 45Q tax credit, which lays the groundwork for future projects that are good for both the economy and the environment.”
Sen. Wicker noted that the coronavirus pandemic has resulted in dramatic swings in demand for oil, gas and other forms of energy. “The SAVE Jobs Act would make targeted short-term adjustments to help ensure the long-term health of this critical industry,” he said.