Methane Reduction and Economic Growth Act

This bill, titled the "Methane Reduction and Economic Growth Act," proposes to amend Section 45Q of the Internal Revenue Code of 1986. Its primary purpose is to establish a new tax credit designed to incentivize the capture of methane from mining activities. This credit aims to prevent methane, a potent greenhouse gas, from being released into the atmosphere by encouraging its beneficial capture and utilization. The proposed credit applies to qualified methane captured from sources such as underground, abandoned, or surface mines. To be eligible, the methane must be captured by methane capture equipment and subsequently injected into compliant pipelines for energy use, or otherwise used for producing heat or other energy with minimal atmospheric release. A qualified facility must begin construction before January 1, 2036, and capture at least 2,500 metric tons of CO2e methane annually. These amendments will apply to qualified methane captured after December 31, 2024.