Methane Reduction and Economic Growth Act
Sponsored By: Senator Mark Warner
Introduced
Summary
Expands the 45Q tax credit to reward methane capture from mining. This bill would create a methane‑capture incentive by adapting the existing Section 45Q framework so projects earn a per‑metric‑ton carbon dioxide equivalent credit for methane that is captured and then injected into pipelines or used to produce heat or energy under tight leak controls.
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- Mining facilities and operators: Would become eligible to claim a methane capture credit if they build methane capture equipment, meet a minimum annual capture of 2,500 metric tons CO2e, and verify methane at the source and at the point of injection or use.
- Pipeline and energy operators: Projects that connect capture equipment to new or existing pipeline systems or to generation equipment must follow pipeline integrity and leak monitoring rules under 49 C.F.R. §192 and §192.935 when methane is injected or transported.
- Project developers and taxpayers: The bill substitutes “methane” and “methane capture equipment” into the 45Q credit calculation and qualifications so the existing tax credit mechanics apply to methane capture projects.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Tax credit for mine methane capture
If enacted, the bill would let mine owners and project developers claim the Section 45Q carbon capture tax credit for methane captured after December 31, 2024. The methane must come from underground, abandoned/closed, or surface mines and would otherwise be released. A qualified source is each borehole, well, or vent shaft. Construction of the facility and its methane capture equipment must begin before January 1, 2036. Each qualified facility must capture at least 2,500 metric tons CO2e in the taxable year. The capture equipment must connect the source to a pipeline or to energy generation equipment. Captured methane must be injected into pipelines or gathering systems that meet federal pipeline integrity and leak‑monitoring rules, or used to make heat or energy with only de minimis methane release. The credit would be measured per metric ton of CO2e; the bill text does not specify a dollar amount per ton.
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Sponsors & CoSponsors
Sponsor
Mark Warner
VA • D
Cosponsors
Shelley Capito
WV • R
Sponsored 7/16/2025
John Fetterman
PA • D
Sponsored 11/4/2025
Katie Britt
AL • R
Sponsored 11/4/2025
James Justice
WV • R
Sponsored 11/18/2025
Jon Husted
OH • R
Sponsored 3/24/2026
Roll Call Votes
No roll call votes available for this bill.
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