Mar 5, 2025

First look: New methane credit pitched for reconciliation

Mar 5, 2025

Photo illustration of a pipeline with abstract shapes. — Photo illustration: Shoshana Gordon/Axios. Photo: Ashley Cooper/Construction Photography/Avalon/Getty Images

Rep. Carol Miller reintroduced a bipartisan bill to expand the 45Q carbon capture tax credit to create an incentive for mine methane capture, Daniel writes.

Why it matters: Miller's pitching the bill — details of which were first shared with Axios — for inclusion in reconciliation.

Cosponsors include Republican Guy Reschenthaler, the chief deputy whip, and Democrats Terri Sewell and Chris Deluzio.

Zoom in: The Methane Reduction and Economic Growth Act would establish a Mine Methane Capture Incentive Credit within 45Q created by the IRA.

The new credit would be based on the amount of qualified methane that's captured and injected into a pipeline, or is otherwise used for producing heat or energy.
Methane would be captured from mining activities, including underground mines, abandoned or closed mines, or surface mines, or would otherwise be released into the atmosphere.

Expanding the tax credit "is an important first step to secure our economic and energy success," Miller said in a statement to Axios.

A Senate version was introduced last year by Mark Warner and Shelley Moore Capito.

First look: New methane credit pitched for reconciliation

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