Methane Reduction and Economic Growth Act

HR 3982, the Methane Reduction and Economic Growth Act, creates a new tax credit for businesses capturing methane from mining operations. It directly affects mining facilities that capture at least 2,500 metric tons of methane annually from underground, abandoned, surface mines, or related activities, requiring the methane to be used for energy (with minimal leaks) or injected into compliant pipelines. The credit replaces carbon capture provisions in the tax code, defining "qualified methane" as methane captured at the source and verified for use or storage. The credit applies to methane captured after December 31, 2022, for facilities beginning construction before January 1, 2033.