Bill > S2304

This bill amends Section 45Q of the Internal Revenue Code to create a tax incentive credit for methane capture at mining facilities. Specifically, the bill establishes a new tax credit for capturing methane from underground, abandoned, closed, or surface mines that would otherwise be released into the atmosphere as a greenhouse gas. To qualify, mining facilities must capture at least 2,500 metric tons of CO2 equivalent (CO2e) of methane per year, with equipment installed before January 1, 2036. The captured methane must either be injected into a compliant pipeline system, used in a gathering system feeding such a pipeline, or used to produce heat or energy with minimal methane release. The credit can be claimed when the methane is measured at the source, verified at the point of injection or use, and meets specific regulatory standards. The tax credit aims to incentivize methane reduction from mining operations, potentially reducing greenhouse gas emissions while providing an economic benefit to mining companies. The provisions of this bill will take effect for methane captured after December 31, 2024.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2304/all-info