Bill > HR1881

This bill amends section 45Q of the Internal Revenue Code to create a new tax credit incentive for capturing methane from mining operations. Specifically, the bill establishes a credit for qualifying methane capture projects at mining facilities, including underground, abandoned, closed, or surface mines. To be eligible, a project must capture at least 2,500 metric tons of CO2 equivalent (CO2e) of methane annually, with construction of methane capture equipment beginning before January 1, 2036. The captured methane must either be injected into a compliant pipeline system or used for energy production in a way that minimizes methane release into the atmosphere. The credit applies to methane that would otherwise be released as a greenhouse gas, and the methane must be measured at the source and verified at the point of injection or use. The bill defines specific equipment and procedures for methane capture, including connections to pipeline systems or energy generation equipment. These tax credit provisions are set to take effect for methane captured after December 31, 2024, providing a financial incentive for mining operations to reduce methane emissions and potentially create new energy resources.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/1881/all-info