Methane Reduction and Economic Growth Act

New tax credit for mine methane capture

This bill would create a tax credit paid per metric ton of CO2e of methane captured from mining. To qualify, the facility and the capture equipment would need to start construction before January 1, 2036, and the site would need to capture at least 2,500 metric tons CO2e in the tax year. The methane would have to come from mine sources, be measured at the source, and be verified at the point of injection or use. Credit would apply when methane is injected for energy use into pipelines that meet 49 CFR 192 rules (or into a gathering system feeding such a pipeline), or when it is used to make heat or other energy with no more than a de minimis leak. The rules would apply to methane captured after December 31, 2024, and the equipment would need to connect to a pipeline or to energy generation equipment.