Methane Reduction and Economic Growth Act

Key Points

• This bill creates a new tax credit for mining companies that stop methane gas from leaking into the air. Methane is a powerful gas that often escapes from underground, surface, and abandoned mines.
• To get the tax credit, companies must capture the gas and either put it into a pipeline for energy use or use it to create heat for buildings. They are not allowed to let the gas leak out into the atmosphere.
• The credit applies to any mining facility that captures at least 2,500 metric tons of gas per year. This includes active mines and mines that have already closed down but are still leaking gas.
• The goal is to turn a waste product that harms the environment into a source of energy. This could help create jobs in mining regions and provide a new way for energy companies to make money while being cleaner.
• Companies have until the end of 2035 to start building the equipment needed to capture this gas if they want to qualify for the tax savings.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.