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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2304 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2304
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
July 16, 2025
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Methane Reduction and Economic
Growth Act''.
SEC. 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) paragraph (4) of subsection (a) shall
be applied--
``(I) by substituting `per metric
ton of CO2e (as defined in section
45Z(d)(2)) of qualified methane' for
`per metric ton of qualified carbon
oxide',
``(II) by substituting `methane
capture equipment' for `carbon capture
equipment', and
``(III) by applying the following
in lieu of subparagraph (B) thereof:
```(i) either--
```(I) injected by the taxpayer for
energy use--
```(aa) in a pipeline which
satisfies the pipeline
integrity management guidelines
of section 192 of title 49,
Code of Federal Regulations,
and is in compliance with
instrumental leak monitoring
and other preventive and
mitigative measures under
section 192.935 of title 49,
Code of Federal Regulations, or
```(bb) in a gathering
system that feeds a pipeline
described in subclause (I), or
```(II) otherwise used for
producing heat (for industrial use or
to heat a structure) or other energy,
in a manner that does not involve more
than de-minimis release of methane into
the atmosphere.',
``(ii) the term `qualified facility' shall
mean any individual source of qualified methane
such as borehole, well, or vent shaft
constructed at a mining facility--
``(I) the construction of which
begins before January 1, 2036,
``(II) for which construction of
methane capture equipment begins before
such date, and
``(III) which captures not less
than 2,500 metric tons of CO2e methane
during the taxable year,
``(iii) subsection (b)(2)(A)(ii) shall be
applied by substituting `the greatest amount of
methane captured at such facility in any year
ending prior to' for `the total amount of the
carbon dioxide capture capacity of the carbon
capture equipment in service at such facility
on the day before', and
``(iv) this section shall be applied by
substituting `methane capture' for `carbon
capture' and `qualified methane' for `qualified
carbon oxide' in subsection (b)(2), (f)(1),
(h), and (i)(1).
``(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 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.
``(C) Methane capture equipment defined.--For
purposes of this paragraph, the term `methane capture
equipment' means equipment built to connect a qualified
facility to--
``(i) a preexisting or new pipeline system,
or
``(ii) to energy generation equipment, to
capture qualified methane from such source.''.
(b) Effective Date.--The amendments made by this section shall
apply to qualified methane captured after December 31, 2024.
<all>
Introduced in Senate
Read twice and referred to the Committee on Finance.
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