II 

118TH CONGRESS 

2D SESSION S. 5167 

To amend section 45Q of the Internal Revenue Code of 1986 to establish 

the mine methane capture incentive credit. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 25, 2024 

Mr. WARNER (for himself and Mrs. CAPITO) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend section 45Q of the Internal Revenue Code of 

1986 to establish the mine methane capture incentive credit. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Methane Reduction 

5 and Economic Growth Act’’. 

6 SEC. 2. MINE METHANE CAPTURE INCENTIVE CREDIT. 

7 (a) IN GENERAL.—Section 45Q(f) of the Internal 

8 Revenue Code of 1986 is amended by adding at the end 

9 the following new paragraph: 

10 ‘‘(10) METHANE CAPTURE.— 


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1 ‘‘(A) IN GENERAL.—In the case of quali2 fied methane— 

3 ‘‘(i) subsection (a)(4) shall be applied 

4 as if it read as follows: 

5 ‘‘ ‘(4) the applicable dollar amount (as deter6 mined under subsection (b)(1)) per metric ton of 

7 CO2e (as defined in section 45Z(d)(2)) of qualified 

8 methane which is— 

9 ‘‘ ‘(A) captured by the taxpayer using 

10 methane capture equipment which is originally 

11 placed in service at a qualified facility on or 

12 after the date of the enactment of the Bipar13 tisan Budget Act of 2018, during the 12-year 

14 period beginning on the date the equipment was 

15 originally placed in service, and 

16 ‘‘ ‘(B)(i) either— 

17 ‘‘ ‘(I) injected by the taxpayer for en18 ergy use— 

19 ‘‘ ‘(aa) in a pipeline which— 

20 ‘‘ ‘(AA) satisfies the pipeline 

21 integrity management guidelines 

22 under part 192 of title 49, Code 

23 of Federal Regulations, and 

24 ‘‘ ‘(BB) is in compliance 

25 with instrumental leak moniVerDate Sep 11 2014 22:39 Oct 08, 2024 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S5167.IS S5167

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1 toring and other preventive and 

2 mitigative measures under sec3 tion 192.935 of such title, or 

4 ‘‘ ‘(bb) in a gathering system that 

5 feeds a pipeline described in item 

6 (aa), or 

7 ‘‘ ‘(II) otherwise used for producing 

8 heat (for industrial use or to heat a struc9 ture) or energy, 

10 in a manner that does not involve more 

11 than de minimis release of methane into 

12 the atmosphere.’, 

13 ‘‘(ii) for purposes of subsection (d), 

14 the term ‘qualified facility’ means any min15 ing facility— 

16 ‘‘(I) the construction of which be17 gins before January 1, 2033, 

18 ‘‘(II) for which construction of 

19 methane capture equipment begins be20 fore such date, and 

21 ‘‘(III) which captures not less 

22 than 2,500 metric tons of methane 

23 during the taxable year, and 


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1 ‘‘(iii) for purposes of subsections 

2 (b)(2), (f)(1), (f)(4), (h), and (i), such sub3 sections shall be applied— 

4 ‘‘(I) by substituting ‘methane 

5 capture’ for ‘carbon capture’ each 

6 place such term appears, and 

7 ‘‘(II) by substituting ‘qualified 

8 methane’ for ‘qualified carbon oxide’ 

9 each place such term appears. 

10 ‘‘(B) QUALIFIED METHANE DEFINED.— 

11 For purposes of this paragraph, the term 

12 ‘qualified methane’ means any methane 

13 which— 

14 ‘‘(i) is captured from mining activities 

15 (including underground mines, abandoned 

16 or closed mines, or surface mines) by 

17 methane capture equipment, 

18 ‘‘(ii) would otherwise be released into 

19 the atmosphere as an industrial emission 

20 of greenhouse gas or lead to such release, 

21 and 

22 ‘‘(iii) is measured at the source of 

23 capture and verified at the point of injec24 tion or utilization.’’. 


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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to qualified methane captured after 

3 December 31, 2023. 

Æ 


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