I
119THCONGRESS
1
STSESSION H. R. 1881
To amend section 45Q of the Internal Revenue Code of 1986 to establish
the mine methane capture incentive credit.
IN THE HOUSE OF REPRESENTATIVES
MARCH5, 2025
Mrs. M
ILLERof West Virginia (for herself, Ms. SEWELL, Mr.
R
ESCHENTHALER, and Mr. DELUZIO) introduced the following bill; which
was referred to the Committee on Ways and Means
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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Methane Reduction 4
and Economic Growth Act’’. 5
SEC. 2. MINE METHANE CAPTURE INCENTIVE CREDIT. 6
(a) I
NGENERAL.—Section 45Q(f) of the Internal 7
Revenue Code of 1986 is amended by adding at the end 8
the following new paragraph: 9
‘‘(10) M
ETHANE CAPTURE.— 10
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‘‘(A) IN GENERAL.—In the case of quali-1
fied methane— 2
‘‘(i) paragraph (4) of subsection (a) 3
shall be applied— 4
‘‘(I) by substituting ‘per metric 5
ton of CO2e (as defined in section 6
45Z(d)(2)) of qualified methane’ for 7
‘per metric ton of qualified carbon 8
oxide’, 9
‘‘(II) by substituting ‘methane 10
capture equipment’ for ‘carbon cap-11
ture equipment’, and 12
‘‘(III) by applying the following 13
in lieu of subparagraph (B) thereof: 14
‘‘‘(B) either— 15
‘‘‘(i) injected by the taxpayer for en-16
ergy use— 17
‘‘‘(I) in a pipeline which satisfies 18
the pipeline integrity management 19
guidelines of section 192 of title 49, 20
Code of Federal Regulations, and is in 21
compliance with instrumental leak 22
monitoring and other preventive and 23
mitigative measures under section 24
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•HR 1881 IH
192.935 of title 49, Code of Federal 1
Regulations, or 2
‘‘‘(II) in a gathering system that 3
feeds a pipeline described in subclause 4
(I), or 5
‘‘‘(ii) otherwise used for producing 6
heat (for industrial use or to heat a struc-7
ture) or other energy, in a manner that 8
does not involve more than de-minimis re-9
lease of methane into the atmosphere’ for 10
‘used by the taxpayer as a tertiary 11
injectant in a qualified enhanced oil or nat-12
ural gas recovery project and disposed of 13
by the taxpayer in secure geological stor-14
age’,’, 15
‘‘(ii) the term ‘qualified facility’ shall 16
mean any individual source of qualified 17
methane such as borehole, well, or vent 18
shaft constructed at a mining facility— 19
‘‘(I) the construction of which be-20
gins before January 1, 2036, 21
‘‘(II) for which construction of 22
methane capture equipment begins be-23
fore such date, and 24
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‘‘(III) which captures not less 1
than 2,500 metric tons of CO2e meth-2
ane during the taxable year, and 3
‘‘(iii) this section shall be applied by 4
substituting ‘methane capture’ for ‘carbon 5
capture’ and ‘qualified methane’ for ‘quali-6
fied carbon oxide’ in subsections (b)(2), 7
(f)(1), (f)(4), (h), and (i)(1). 8
‘‘(B) Q
UALIFIED METHANE DEFINED .— 9
For purposes of this paragraph, the term 10
‘qualified methane’ means any methane 11
which— 12
‘‘(i) is captured from mining activi-13
ties, including underground mines, aban-14
doned or closed mines, or surface mines, 15
by methane capture equipment, 16
‘‘(ii) would otherwise be released into 17
the atmosphere as industrial emission of 18
greenhouse gas or lead to such release, and 19
‘‘(iii) is measured at the source of 20
capture and verified at the point of injec-21
tion or utilization. 22
‘‘(C) M
ETHANE CAPTURE EQUIPMENT DE -23
FINED.— For purposes of this paragraph, the 24
term ‘methane capture equipment’ means 25
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equipment built to connect a qualified facility 1
to— 2
‘‘(i) a preexisting or new pipeline sys-3
tem, or 4
‘‘(ii) to energy generation equipment, 5
to capture qualified methane from such 6
source.’’. 7
(b) E
FFECTIVEDATE.—The amendments made by 8
this section shall apply to qualified methane captured after 9
December 31, 2024. 10
Æ
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