S. 2304

119 S2304 IS: Methane Reduction and Economic Growth Act
 U.S. Senate
 2025-07-16
 text/xml
 EN
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 II  119th CONGRESS  1st Session  S. 2304  IN THE SENATE OF THE UNITED STATES   July 16, 2025   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.
1.
Short title
This Act may be cited as the   Methane Reduction and Economic Growth Act  .
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:
(i)
either—
(I)
injected by the taxpayer for energy use—
(aa)
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
(bb)
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.
 ,
(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,
(iii)
subsection (b)(2)(A)(ii) shall be applied by substituting  the greatest amount of methane captured at such facility in any year ending prior to  for  the total amount of the carbon dioxide capture capacity of the carbon capture equipment in service at such facility on the day before , and
(iv)
this section shall be applied by substituting  methane capture  for  carbon capture  and  qualified methane  for  qualified carbon oxide  in subsection (b)(2), (f)(1), (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.