Methane Reduction and Economic Growth Act

This bill creates a federal tax credit to encourage capturing methane from mines and using it for energy instead of letting it escape into the air. It covers methane from underground, surface, and abandoned or closed mines. To qualify, the methane must be measured where it’s captured and verified where it’s injected or used, and it must be routed into approved pipelines that meet safety and leak‑monitoring rules or used to produce heat or other energy with only minimal leaks to the atmosphere.

The credit is earned per ton of methane captured (measured in carbon‑dioxide equivalent). Projects must start construction before January 1, 2036, capture at least 2,500 metric tons per year, and use equipment that connects the mine to a pipeline or to energy‑generation equipment. The changes apply to methane captured after December 31, 2024.

• Who is affected: Mine operators and companies that capture and use mine methane; pipeline or energy projects tied to mines.
• What changes: A new tax credit for capturing mine methane and putting it to energy use with strict measurement, verification, and leak controls; clear definitions of “qualified methane” and “methane capture equipment”.
• When: Applies to methane captured after December 31, 2024; project construction must begin before January 1, 2036.