“A bill 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 (i.e., methane captured from mining activities—including underground, abandoned, or surface mines—that would otherwise be released into the atmosphere) measured in metric tons of CO2e (as defined in §45Z(d)(2)), with construction of qualified facilities (e.g., boreholes, wells, or vent shafts) and methane capture equipment beginning before January 1, 2036, and annual capture of at least 2,500 metric tons of CO2e methane. Methane capture equipment connects such facilities to pipelines or energy generation equipment, and qualified uses include injection into pipelines compliant with 49 CFR §192 integrity and leak monitoring standards (or compliant gathering systems) or use for industrial heat, structure heating, or other energy with de minimis atmospheric release. (As background, §45Q provides a business tax credit of generally $17–$60 per metric ton of qualified carbon oxide securely stored or utilized.) The amendments apply to methane captured after December 31, 2024.