Methane Reduction and Economic Growth Act

Taxation

senate

house

president

Introduced on September 25, 2024 by Mark R. Warner

Legislation Details

Establishes a new tax credit for qualified methane mine capture.
Defines “qualified methane” as methane captured from mining activities that would otherwise be released as greenhouse gas emissions.
Requires methane to be captured using methane capture equipment.
Methane must be measured at the source of capture and verified at the point of injection or utilization.
The tax credit applies to methane captured by equipment placed in service at a qualified facility after the enactment of the Bipartisan Budget Act of 2018.
Qualified facilities must begin construction before January 1, 2033, and capture at least 2,500 metric tons of methane during the taxable year.
The legislation amends section 45Q of the Internal Revenue Code to include provisions for methane capture similar to those for carbon capture.
The effective date for the tax credit applies to qualified methane captured after December 31, 2023.

Last updated 10/21/2024

Establishes a new tax credit for qualified methane mine capture.
Defines “qualified methane” as methane captured from mining activities that would otherwise be released as greenhouse gas emissions.
Requires methane to be captured using methane capture equipment.
Methane must be measured at the source of capture and verified at the point of injection or utilization.
The tax credit applies to methane captured by equipment placed in service at a qualified facility after the enactment of the Bipartisan Budget Act of 2018.
Qualified facilities must begin construction before January 1, 2033, and capture at least 2,500 metric tons of methane during the taxable year.
The legislation amends section 45Q of the Internal Revenue Code to include provisions for methane capture similar to those for carbon capture.
The effective date for the tax credit applies to qualified methane captured after December 31, 2023.