1. Short title This Act may be cited as the Capitalizing on American Methane Act of 2017 . 2. Incentives for innovative fuel production through qualified methane conversion technology (a) Inclusion of qualified methane conversion technology in gasification project credit (1) In general Paragraph (2) of section 48B(c) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Gasification technology The term gasification technology means— (A) any process which converts a solid or liquid product from coal, petroleum residue, biomass, or other materials which are recovered for their energy or feedstock value into a synthesis gas composed primarily of carbon monoxide and hydrogen for direct use or subsequent chemical or physical conversion, and (B) any qualified methane conversion technology. . (2) Qualified methane conversion technology Subsection (c) of section 48B of such Code is amended by adding at the end the following new paragraph: (9) Qualified methane conversion technology (A) In general The term qualified methane conversion technology means a process consisting of the molecular conversion of a fuel consisting principally of methane into hydrocarbons, and the subsequent use of such hydrocarbons, if such hydrocarbons are principally intended to be used— (i) to replace or reduce the quantity of petroleum present in a fuel used in motor vehicles, motor vehicle engines, nonroad vehicles, nonroad engines, or aircraft if— (I) the lifecycle greenhouse gas emissions associated with the production and combustion is, on an ongoing basis, not more than such emissions from the equivalent conventional fuel produced from conventional petroleum sources, (II) the sulfur concentration is not more than 2 parts per million, and (III) such production is at a facility which, during the taxable year, has an annual total production capacity of not more than 150,000,000 gallons of liquid transportation fuel, or (ii) for the production of chemicals (within the meaning of paragraph (7)(A)). (B) Primary purpose of