“To amend section 45Q of the Internal Revenue Code of 1986 to establish the mine methane capture incentive credit.”
No CRS summary available for this bill.
This section establishes a tax credit under IRC §45Q for qualified methane captured from mining activities (e.g., underground, abandoned, or surface mines) that would otherwise be released into the atmosphere, measured in metric tons of CO2e (as defined in IRC §45Z(d)(2)) and verified at the point of injection or utilization. (Thus, the credit applies at the §45Q rate per metric ton of CO2e to methane captured by methane capture equipment—i.e., equipment connecting a qualified facility such as a borehole, well, or vent shaft to a compliant pipeline system or energy generation equipment—from facilities where construction begins before January 1, 2036, and that capture at least 2,500 metric tons of CO2e methane annually, provided the methane is injected into a compliant pipeline or gathering system or used for heat or energy with de minimis atmospheric release.) The amendments apply to methane captured after December 31, 2024.