Like Causes?

Install the App
TRY NOW

house Bill H.R. 2142

Tax Credits for Turning Methane Into Petroleum

Argument in favor

Tax credits for converting methane into petroleum would strengthen energy innovation by reducing reliance on petroleum-based fuels while making the U.S. less dependent on foreign energy suppliers.

John's Opinion
···
07/13/2015
Unlike Solyndra and solar, methane CAN provide significant energy from investment.
Like (2)
Follow
Share
BTSundra's Opinion
···
03/03/2016
The United States should work to stay the world's leader by becoming more self-sufficient.
Like (2)
Follow
Share
Burnetta's Opinion
···
03/02/2016
Why tax credits right away? First let them prove how good and efficient they are and how much the cost go down before we talk about tax credits just my opinion
Like
Follow
Share

Argument opposed

These tax credits would simply be corporate welfare without leading to the creation of a meaningful alternative energy source. Converting methane into petroleum isn’t the right way to wean us off of petroleum.

SherryTX's Opinion
···
08/01/2015
Really? Obama has had 8 years to pay back favors. If the private sector can't make it work on their own dime, then it isn't at a point where the technology can sustain private use. Back to the drawing board.
Like (1)
Follow
Share
Patrick's Opinion
···
02/03/2016
No tax credits for anything. Lower rates us the answer.
Like
Follow
Share
John's Opinion
···
03/01/2016
No tax credits for corporations! If it's a marketable product then let it be. No tax credits for corporate profits
Like
Follow
Share

What is House Bill H.R. 2142?

This bill would provide tax credits to facilities which use qualified methane conversion technology to make gasoline, incentivizing companies to convert methane (the main component of natural gas) into fuel rather than relying on depleting petroleum reserves. It would also provide an alternative excise tax credit for the production of liquid fuel through the above technology, applying to all conversion until October 1, 2025.

Qualified methane conversion technology is defined as “a process for the molecular conversion of a fuel consisting principally of methane into hydrocarbons and the use of such hydrocarbons to replace or reduce the quantity of petroleum present in motor vehicle fuel and for the production of chemicals.”

Impact

Methane conversion facilities; methane-to-gas projects; investments in methane-to-gas projects; and the federal government.

Cost of House Bill H.R. 2142

A CBO cost estimate is unavailable.

More Information

Of Note: Compared to oil, methane is more abundant, more efficient as a fuel, and more eco-friendly in terms of pollution released. According to research from the University of Washington, this primary component of natural gas could “serve as a practical substitute for petroleum-based fuels until renewable fuels [become] widely usable and available.”

Methane conversion would allow the U.S. to better tap into its own natural gas supply. Although the U.S. imported most of its natural gas over a decade ago, fracking has enabled the U.S. to become more independent in the energy sphere; leading oil company BP projects that the U.S. will be energy self-sufficient by 2021 and oil self-sufficient by 2030.

In addition being used in fuel production, petroleum is used to make ethylene, propylene, and a variety of other chemicals. Using methane as an alternative in creating fuel would enable the petroleum that’s left to be used in the production of these other chemicals.

Despite these benefits, methane is often difficult to work with. Because of its gaseous state, the compound is difficult to capture, store, and transport and requires high heat to activate.

Media:

AKA

Capitalizing on American Methane Act of 2015

Official Title

To amend the Internal Revenue Code of 1986 to allow a credit against income tax for facilities using a qualified methane conversion technology to provide transportation fuels and chemicals.

bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      Committee on Ways and Means
    IntroducedApril 30th, 2015