Methane Reduction and Economic Growth Act

This bill amends the tax code to create a credit for capturing methane from mining activities. It adds a new paragraph to section 45Q of the Internal Revenue Code. Sec. 2, Mine methane capture incentive credit: This section establishes a tax credit for qualified methane captured from mining. The credit is calculated per metric ton of CO2 equivalent of qualified methane, using methane capture equipment instead of carbon capture equipment. The methane must be injected into a compliant pipeline or gathering system, or used for heat or energy, with minimal release into the atmosphere. A qualified facility is any mining facility where construction of methane capture equipment begins before January 1, 2033, and which captures at least 2,500 metric tons of methane per year. Qualified methane is methane captured from mining activities (including underground, abandoned, closed, or surface mines) that would otherwise be released as greenhouse gas, measured at the source and verified at the point of injection or use. The amendments apply to qualified methane captured after December 31, 2022.