Methane Reduction and Economic Growth Act
Summary
What This Bill Does
The Methane Reduction and Economic Growth Act adds mine methane capture to the section 45Q tax-credit structure. Qualified methane must be captured from underground, abandoned, closed, or surface mining activities by equipment that would otherwise release it to the atmosphere. A qualified facility is an individual source such as a borehole, well, or vent shaft at a mining facility, with construction and methane capture equipment placed before January 1, 2036, and at least 2,500 metric tons of CO2-equivalent methane captured in a taxable year. Captured methane must be measured at capture and verified at injection or utilization. It can qualify when sent through a monitored pipeline system or gathering system, or when used for heat or energy with no more than de minimis release. The bill applies after December 31, 2024.
Who Benefits and How
Mine methane capture developers benefit because a 45Q-style credit can finance projects at mines, abandoned mines, wells, boreholes, and vent shafts. Mining facility operators benefit if captured methane becomes a tax-credit-generating asset rather than a vented waste stream. Industrial energy users benefit when captured methane can be used for heat or energy with minimal release. Climate and air-quality advocates benefit if more methane is captured before atmospheric release.
Who Bears the Burden and How
Treasury and IRS staff must administer new eligibility, construction-date, measurement, verification, and utilization rules. Federal taxpayers bear revenue loss from credits claimed for qualifying mine methane projects. Pipeline and gathering system operators must satisfy monitoring and integrity requirements when moving captured methane. Mine operators seeking credits must document annual capture thresholds and verification at capture, injection, or utilization.
Key Provisions
- Adds mine methane to section 45Q eligible captured gas when it would otherwise be released from mining activities.
- Defines qualified facilities as individual mine methane sources with construction and equipment deadlines before January 1, 2036.
- Requires at least 2,500 metric tons of CO2-equivalent methane capture per taxable year.
- Requires measurement and verification for pipeline injection, gathering-system transfer, or heat and energy use.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Expands the section 45Q carbon capture credit to mine methane captured from underground, abandoned, closed, or surface mining activities when methane would otherwise be released, is measured and verified, and is injected through monitored systems or used for heat or energy.
Key Policy Areas
Tax, Energy, Mining, Climate
Primary Purpose
Expands the section 45Q carbon capture credit to mine methane captured from underground, abandoned, closed, or surface mining activities when methane would otherwise be released, is measured and verified, and is injected through monitored systems or used for heat or energy.
Policy Domains
Resolution provisions
Identified Gains
- Mine methane capture developers
- Mining facility operators
- Industrial energy users
- Climate and air-quality advocates
Identified Costs
- Treasury Department
- Federal taxpayers
- Pipeline and gathering system operators
- Mine operators seeking credits
Sponsors
Legislative Progress
In CommitteeMrs. Miller of West Virginia (for herself, Ms. Sewell, Mr. …
Referred to the House Committee on Ways and Means.
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Mine methane capture developers, Pipeline and gathering system operators
Positive-direction: Mine methane capture developers
Negative-direction: Pipeline and gathering system operators
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology