[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1881 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                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

                             March 5, 2025

      Mrs. Miller of West Virginia (for herself, Ms. Sewell, Mr. 
 Reschenthaler, 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 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:
                    ```(B) either--
                            ```(i) injected by the taxpayer for energy 
                        use--
                                    ```(I) 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
                                    ```(II) 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' for `used by the taxpayer as a 
                        tertiary injectant in a qualified enhanced oil 
                        or natural gas recovery project and disposed of 
                        by the taxpayer in secure geological 
                        storage',',
                            ``(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, and
                            ``(iii) this section shall be applied by 
                        substituting `methane capture' for `carbon 
                        capture' and `qualified methane' for `qualified 
                        carbon oxide' in subsections (b)(2), (f)(1), 
                        (f)(4), (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.
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