Methane Reduction and Economic Growth Act

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.