[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5167 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 5167
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
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.
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) 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<INF>2</INF>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.
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