I 
114TH CONGRESS 
1ST SESSION H. R. 2142 
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for facilities using a qualified methane conversion technology 
to provide transportation fuels and chemicals. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 30, 2015 
Mr. THOMPSON of Pennsylvania (for himself and Mr. LARSON of Connecticut) 
introduced the following bill; which was referred to the Committee on 
Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow a 
credit against income tax for facilities using a qualified 
methane conversion technology to provide transportation 
fuels and chemicals. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Capitalizing on Amer-
ican Methane Act of 2015’’. 
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SEC. 2. INCENTIVES FOR INNOVATIVE FUEL PRODUCTION 
THROUGH QUALIFIED METHANE CONVER-
SION TECHNOLOGY. 
(a) INCLUSION OF QUALIFIED METHANE CONVER-
SION TECHNOLOGY IN GASIFICATION PROJECT CREDIT.— 
(1) IN
GENERAL.—Paragraph (2) of section 
48B(c) of the Internal Revenue Code of 1986 is 
amended to read as follows: 
‘‘(2) GASIFICATION
TECHNOLOGY.—The term 
‘gasification technology’ means— 
‘‘(A) any process which converts a solid or 
liquid product from coal, petroleum residue, 
biomass, or other materials which are recovered 
for their energy or feedstock value into a syn-
thesis gas composed primarily of carbon mon-
oxide and hydrogen for direct use or subsequent 
chemical or physical conversion, and 
‘‘(B) any qualified methane conversion 
technology.’’. 
(2) QUALIFIED METHANE CONVERSION TECH-
NOLOGY.—Subsection (c) of section 48B of such 
Code is amended by adding at the end the following 
new paragraph: 
‘‘(9) QUALIFIED METHANE CONVERSION TECH-
NOLOGY.— 
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‘‘(A) IN
GENERAL.—The term ‘qualified 
methane conversion technology’ means a proc-
ess consisting of the molecular conversion of a 
fuel consisting principally of methane into hy-
drocarbons, and the subsequent use of such hy-
drocarbons, if such hydrocarbons are principally 
intended to be used— 
‘‘(i) to replace or reduce the quantity 
of petroleum present in a fuel used in 
motor vehicles, motor vehicle engines, 
nonroad vehicles, nonroad engines, or air-
craft if— 
‘‘(I) the lifecycle greenhouse gas 
emissions associated with the produc-
tion and combustion is, on an ongoing 
basis, not more than such emissions 
from the equivalent conventional fuel 
produced from conventional petroleum 
sources, 
‘‘(II) the sulfur concentration is 
not more than 2 parts per million, 
and 
‘‘(III) such production is at a fa-
cility which, during the taxable year, 
has an annual total production capac-
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ity of not more than 150,000,000 gal-
lons of liquid transportation fuel, or 
‘‘(ii) for the production of chemicals 
(within the meaning of paragraph (7)(A)). 
‘‘(B) PRIMARY PURPOSE OF FACILITY.—If 
a facility uses qualified methane conversion 
technology to produce both fuels and chemicals, 
the requirements described in subparagraph 
(A)(i) shall apply only if the primary use of the 
facility is to produce fuels. 
‘‘(C) EXCLUSION.—The term ‘qualified 
methane conversion technology’ does not include 
technology that is part of a facility the con-
struction of which begins after September 30, 
2025.’’ 
(3) INCREASE
IN
CREDIT
AVAILABLE
FOR 
METHANE CONVERSION PROJECTS.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 48B(d) of such Code is amended by strik-
ing ‘‘plus’’ at the end of subparagraph (A), by 
striking the period at the end of subparagraph 
(B) and inserting ‘‘, plus’’, and by adding at 
the end the following new subparagraph: 
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‘‘(C) $500,000,000 for qualifying gasifi-
cation projects that rely primarily on qualified 
methane conversion technology. 
No qualifying gasification project shall receive more 
than $100,000,000 under the program.’’. 
(B) PERIOD OF ISSUANCE.—Paragraph (2) 
of section 48B(d) of such Code is amended to 
read as follows: 
‘‘(2) PERIOD OF ISSUANCE.— 
‘‘(A) IN GENERAL.—A certificate of eligi-
bility under subparagraphs (A) and (B) of 
paragraph (1) may be issued only before Octo-
ber 1, 2025. 
‘‘(B) QUALIFIED
METHANE
CONVERSION 
TECHNOLOGY.—A certificate of eligibility under 
subparagraph (C) of paragraph (1) may be 
issued only during the 10-fiscal year period be-
ginning on the first October 1 which is on or 
after the date of the enactment of this para-
graph.’’. 
(C) SELECTION
PRIORITIES.—Paragraph 
(4) of section 48B(d) of such Code is amended 
to read as follows: 
‘‘(4) SELECTION PRIORITIES.— 
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‘‘(A) IN GENERAL.—In determining which 
qualifying gasification projects, other than 
projects using qualified methane conversion 
technology, to certify under this section, the 
Secretary shall— 
‘‘(i) give highest priority to projects 
with the greatest separation and sequestra-
tion percentage of total carbon dioxide 
emissions, and 
‘‘(ii) give high priority to applicant 
participants who have a research partner-
ship with an eligible educational institution 
(as defined in section 529(e)(5)). 
‘‘(B) CHEMICALS PROJECTS USING QUALI-
FIED METHANE CONVERSION TECHNOLOGY.—In 
determining 
which 
qualifying 
gasification 
projects that produce chemicals using qualified 
methane conversion technology to certify under 
this section, the Secretary shall give priority to 
projects involving a production process that has 
significant environmental benefits over the pro-
duction of the same chemical from petroleum 
products.’’. 
(b) INCLUSION OF QUALIFIED METHANE CONVER-
SION TECHNOLOGY IN ALTERNATIVE FUEL CREDIT.— 
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Paragraph (2) of section 6426(d) of the Internal Revenue 
Code of 1986 is amended by striking ‘‘and’’ at the end 
of subparagraph (F), by striking the period at the end 
of subparagraph (G) and inserting ‘‘, and’’, and by adding 
at the end the following new subparagraph: 
‘‘(H) liquid fuel produced through qualified 
methane conversion technology (as defined in 
section 48B(c)(9)(A)) at a facility the construc-
tion of which begins before October 1, 2025.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Æ 
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