Methane Reduction and Economic Growth Act

Bill: 118-s-5167
Sponsor: full_name: Sen. Warner, Mark R. [D-VA]
Introduced: 2024-09-25
Policy area: Taxation
Latest action: action_date: 2024-09-25
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2024-09-25
action_desc: Introduced in Senate
text: <p><strong>Methane Reduction and Economic Growth Act&nbsp;</strong></p><p>This bill establishes a new tax credit for qualified methane mine capture. The bill defines&nbsp;<em>qualified methane</em> as any methane that is captured from mining activities by methane capture equipment, would otherwise be released into the atmosphere as an industrial emission of greenhouse gas or lead to such release, and is measured at the source of capture and verified at the point of injection or utilization.&nbsp;</p>

tv_txt: II 118th CONGRESS 2d Session S. 5167 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. Short title This Act may be cited as the Methane Reduction and Economic Growth Act . 2. Mine methane capture incentive credit (a) In general Section 45Q(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (10) Methane capture (A) In general In the case of qualified methane— (i) subsection (a)(4) shall be applied as if it read as follows: (4) the applicable dollar amount (as determined under subsection (b)(1)) per metric ton of CO 2 e (as defined in section 45Z(d)(2)) of qualified methane which is— (A) captured by the taxpayer using methane capture equipment which is originally placed in service at a qualified facility on or after the date of the enactment of the Bipartisan Budget Act of 2018, during the 12-year period beginning on the date the equipment was originally placed in service, and (B) (i) either— (I) injected by the taxpayer for energy use— (aa) in a pipeline which— (AA) satisfies the pipeline integrity management guidelines under part 192 of title 49, Code of Federal Regulations, and (BB) is in compliance with instrumental leak monitoring and other preventive and mitigative measures under section 192.935 of such title, or (bb) in a gathering system that feeds a pipeline described in item (aa), or (II) otherwise used for producing heat (for industrial use or to heat a structure) or energy, in a manner that does not involve more than de minimis release of methane into the atmosphere. , (ii) for purposes of subsection (d), the term qualified facility means any mining facility— (I) the construction of which begins before January 1, 2033, (II) for which construction of methane capture equipment begins before such date, and (III) which captures not less than 2,500 metric tons of methane during the taxable year, and (iii) for purposes of subsections (b)(2), (f)(1), (f)(4), (h), and (i), such subsections shall be applied— (I) by substituting methane capture for carbon capture each place such term appears, and (II) by substituting qualified methane for qualified carbon oxide each place such term appears. (B) Qualified methane defined For purposes of this paragraph, the term qualified methane means any methane which— (i) is captured from mining activities (including underground mines, abandoned or closed mines, or surface mines) by methane capture equipment, (ii) would otherwise be released into the atmosphere as an industrial emission of greenhouse gas or lead to such release, and (iii) is measured at the source of capture and verified at the point of injection or utilization. . (b) Effective date The amendment made by this section shall apply to qualified methane captured after December 31, 2023.