119-s2304

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2304 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 2304

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

 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.

 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:
 ```
            (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.
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