SAVE Jobs Act

To assist the American energy sector in retaining jobs during challenging economic times. 1. Short title This Act may be cited as the Save American Vital Energy Jobs Act SAVE Jobs Act 2. Extension of period to begin construction of qualified facilities for carbon oxide sequestration credit Section 45Q(d)(1) January 1, 2024 January 1, 2025 3. Temporary suspension of rules for capitalization and inclusion in inventory costs of certain expenses for specified entities (a) In general Section 263A(a) (3) Temporary relief for specified entities (A) In general In the case of any taxpayer which is assigned North American Industry Classification System code 213111, at the election of such taxpayer, this section shall not apply with respect to any costs paid or incurred by such taxpayer which are described in paragraph (2). (B) Termination This paragraph shall not apply to costs paid or incurred after December 31, 2020. . (b) Effective date The amendment made by this section shall apply to costs paid or incurred after December 31, 2019. 4. Reduction of deposit required for certain excise taxes (a) In general If any person is required under section 6302 (b) Transfers to trust funds For purposes of any appropriation required to be made to any trust fund under subchapter A of chapter 98 5. Temporary relief for deductions related to intangible drilling costs Section 291(b) (6) Temporary relief for deductions related to intangible drilling costs At the election of the taxpayer, subparagraph (A) of paragraph (1) shall not apply with respect to costs paid or incurred after December 31, 2019, and before January 1, 2021. . 6. Authority to extend and suspend production and operations under onshore and offshore leases (a) In general Notwithstanding any other provision of law and subject to subsection (b), with respect to a lease held under the Mineral Leasing Act ( 30 U.S.C. 181 42 U.S.C. 6501 43 U.S.C. 1331 Secretary (1) an extension of the primary term of the lease; (2) a suspension of production under the lease; or (3) a suspension of operations under the lease. (b) Requirement An extension or suspension granted under subsection (a) shall only be effective if the Secretary grants the extension or suspension during the period of the national emergency declared by the President under the National Emergencies Act ( 50 U.S.C. 1601 (c) Administration A leaseholder desiring an extension or suspension under subsection (a)— (1) shall not be required to submit an application; but (2) shall submit to the Secretary a list of leases for which the leaseholder is requesting an extension or suspension. (d) Duration (1) In general Subject to paragraph (2), the Secretary shall determine the duration of an extension or suspension granted under subsection (a). (2) Requirement The duration of an extension or suspension determined by the Secretary under paragraph (1) shall be at least 1 year, unless the leaseholder requests a shorter duration. 7. Royalty reduction for onshore and offshore leases (a) In general Notwithstanding any other provision of law and subject to subsection (c), the Secretary of the Interior (referred to in this section as the Secretary 30 U.S.C. 181 42 U.S.C. 6501 43 U.S.C. 1331 (b) Extension The Secretary may grant an extension of the 180-day period described in subsection (a) if determined appropriate by the Secretary. (c) Requirement A royalty reduction granted under subsection (a) shall only be effective if the Secretary grants the royalty reduction during the period of the national emergency declared by the President under the National Emergencies Act ( 50 U.S.C. 1601 8. Delayed implementation of valuation The Secretary of the Interior shall delay the effective date by which compliance is required with the final rule entitled Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform

Summary: Save American Vital Energy Jobs Act or the SAVE Jobs Act This bill extends energy-related tax provisions and expands incentives for job creation in the energy sector during the COVID-19 (i.e., coronavirus disease 2019) emergency period. Specifically, the bill extends for one year the construction period for carbon oxide sequestration facilities for purposes of the tax credit, suspends capitalization rules in 2020 to permit immediate expensing of certain inventory costs, reduces the required deposit of certain motor fuel excise taxes from 95% to 25%, allows expensing of intangible drilling costs in 2020, permits extensions and suspensions of production and operations under onshore and offshore leases during the COVID-19 emergency period, requires a royalty rate reduction during the COVID-19 emergency period for a maximum 180-day period, and requires the Department of the Interior to delay until July 1, 2022, the effective date for compliance with the 2016 final rule titled Consolidated Federal Oil & Gas and Federal & Indian Coal Valuation Reform.