SAVE Jobs Act

I 116TH CONGRESS 2D SESSION H. R. 7579 To assist the American energy sector in retaining jobs during challenging economic times. IN THE HOUSE OF REPRESENTATIVES JULY 13, 2020 Mr. BURGESS (for himself, Mr. FLORES, Mr. CARTER of Texas, Mr. CON- AWAY, Mr. CRENSHAW, and Mr. BISHOP of Utah) introduced the fol- lowing bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consider- ation of such provisions as fall within the jurisdiction of the committee concerned A BILL To assist the American energy sector in retaining jobs during challenging economic times. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Save American Vital 4 Energy Jobs Act’’ or the ‘‘SAVE Jobs Act’’. 5 VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS 2 •HR 7579 IH SEC. 2. EXTENSION OF PERIOD TO BEGIN CONSTRUCTION 1 OF QUALIFIED FACILITIES FOR CARBON 2 OXIDE SEQUESTRATION CREDIT. 3 Section 45Q(d)(1) of the Internal Revenue Code of 4 1986 is amended by striking ‘‘January 1, 2024’’ and in- 5 serting ‘‘January 1, 2025’’. 6 SEC. 3. TEMPORARY SUSPENSION OF RULES FOR CAPITAL- 7 IZATION AND INCLUSION IN INVENTORY 8 COSTS OF CERTAIN EXPENSES FOR SPECI- 9 FIED ENTITIES. 10 (a) IN GENERAL.—Section 263A(a) of the Internal 11 Revenue Code of 1986 is amended by adding at the end 12 the following: 13 ‘‘(3) TEMPORARY RELIEF FOR SPECIFIED ENTI- 14 TIES.— 15 ‘‘(A) IN GENERAL.—In the case of any 16 taxpayer which is assigned North American In- 17 dustry Classification System code 213111, at 18 the election of such taxpayer, this section shall 19 not apply with respect to any costs paid or in- 20 curred by such taxpayer which are described in 21 paragraph (2). 22 ‘‘(B) TERMINATION.—This paragraph 23 shall not apply to costs paid or incurred after 24 December 31, 2020.’’. 25 VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS 3 •HR 7579 IH (b) EFFECTIVE DATE.—The amendment made by 1 this section shall apply to costs paid or incurred after De- 2 cember 31, 2019. 3 SEC. 4. REDUCTION OF DEPOSIT REQUIRED FOR CERTAIN 4 EXCISE TAXES. 5 (a) IN GENERAL.—If any person is required under 6 section 6302 of the Internal Revenue Code of 1986 to 7 make any deposit of taxes imposed under part III of sub- 8 chapter A of chapter 32 of such Code which is due after 9 the date of enactment of this Act and before January 1, 10 2021, such person shall be required to make such deposit 11 in an amount which is equal to 25 percent of the amount 12 which would otherwise be required under section 6302 of 13 such Code with respect to such taxes (as determined with- 14 out regard to this subsection). 15 (b) TRANSFERS TO TRUST FUNDS.—For purposes of 16 any appropriation required to be made to any trust fund 17 under subchapter A of chapter 98 of the Internal Revenue 18 Code of 1986 which is based on the amount of any taxes 19 received in the Treasury under part III of subchapter A 20 of chapter 32 of such Code, such amount shall be deter- 21 mined as if subsection (a) did not apply. 22 VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS 4 •HR 7579 IH SEC. 5. TEMPORARY RELIEF FOR DEDUCTIONS RELATED 1 TO INTANGIBLE DRILLING COSTS. 2 Section 291(b) of the Internal Revenue Code of 1986 3 is amended by adding at the end the following new para- 4 graph: 5 ‘‘(6) TEMPORARY RELIEF FOR DEDUCTIONS RE- 6 LATED TO INTANGIBLE DRILLING COSTS.—At the 7 election of the taxpayer, subparagraph (A) of para- 8 graph (1) shall not apply with respect to costs paid 9 or incurred after December 31, 2019, and before 10 January 1, 2021.’’. 11 SEC. 6. AUTHORITY TO EXTEND AND SUSPEND PRODUC- 12 TION AND OPERATIONS UNDER ONSHORE 13 AND OFFSHORE LEASES. 14 (a) IN GENERAL.—Notwithstanding any other provi- 15 sion of law and subject to subsection (b), with respect to 16 a lease held under the Mineral Leasing Act (30 U.S.C. 17 181 et seq.), the Naval Petroleum Reserves Production 18 Act of 1976 (42 U.S.C. 6501 et seq.), or the Outer Conti- 19 nental Shelf Lands Act (43 U.S.C. 1331 et seq.), on the 20 request of the leaseholder, the Secretary of the Interior 21 (referred to in this section as the ‘‘Secretary’’) shall 22 grant— 23 (1) an extension of the primary term of the 24 lease; 25 VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS 5 •HR 7579 IH (2) a suspension of production under the lease; 1 or 2 (3) a suspension of operations under the lease. 3 (b) REQUIREMENT.—An extension or suspension 4 granted under subsection (a) shall only be effective if the 5 Secretary grants the extension or suspension during the 6 period of the national emergency declared by the President 7 under the National Emergencies Act (50 U.S.C. 1601 et 8 seq.) with respect to the Coronavirus Disease 2019 9 (COVID–19). 10 (c) ADMINISTRATION.—A leaseholder desiring an ex- 11 tension or suspension under subsection (a)— 12 (1) shall not be required to submit an applica- 13 tion; but 14 (2) shall submit to the Secretary a list of leases 15 for which the leaseholder is requesting an extension 16 or suspension. 17 (d) DURATION.— 18 (1) IN GENERAL.—Subject to paragraph (2), 19 the Secretary shall determine the duration of an ex- 20 tension or suspension granted under subsection (a). 21 (2) REQUIREMENT.—The duration of an exten- 22 sion or suspension determined by the Secretary 23 under paragraph (1) shall be at least 1 year, unless 24 the leaseholder requests a shorter duration. 25 VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS 6 •HR 7579 IH SEC. 7. ROYALTY REDUCTION FOR ONSHORE AND OFF- 1 SHORE LEASES. 2 (a) IN GENERAL.—Notwithstanding any other provi- 3 sion of law and subject to subsection (c), the Secretary 4 of the Interior (referred to in this section as the ‘‘Sec- 5 retary’’) shall reduce the royalty rate for payments due 6 and payable to the United States from oil, gas, minerals, 7 coal, or trona produced under a lease held under the Min- 8 eral Leasing Act (30 U.S.C. 181 et seq.), the Naval Petro- 9 leum Reserves Production Act of 1976 (42 U.S.C. 6501 10 et seq.), or the Outer Continental Shelf Lands Act (43 11 U.S.C. 1331 et seq.) for a period of not more than 180 12 days. 13 (b) EXTENSION.—The Secretary may grant an exten- 14 sion of the 180-day period described in subsection (a) if 15 determined appropriate by the Secretary. 16 (c) REQUIREMENT.—A royalty reduction granted 17 under subsection (a) shall only be effective if the Secretary 18 grants the royalty reduction during the period of the na- 19 tional emergency declared by the President under the Na- 20 tional Emergencies Act (50 U.S.C. 1601 et seq.) with re- 21 spect to the Coronavirus Disease 2019 (COVID–19). 22 SEC. 8. DELAYED IMPLEMENTATION OF VALUATION. 23 The Secretary of the Interior shall delay the effective 24 date by which compliance is required with the final rule 25 entitled ‘‘Consolidated Federal Oil & Gas and Federal & 26 VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS 7 •HR 7579 IH Indian Coal Valuation Reform’’ (81 Fed. Reg. 43338 1 (July 1, 2016)) until July 1, 2022. 2 Æ VerDate Sep 11 2014 21:46 Aug 03, 2020 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6301 E:\BILLS\H7579.IH H7579 pbinns on DSKJLVW7X2PROD with BILLS