Bill > S1188

This bill (the FLARE Act) proposes to amend the Internal Revenue Code to provide permanent tax incentives for systems that capture and repurpose natural gas that would otherwise be flared (burned off) or vented (released) at energy production sites. Specifically, the bill allows for 100% immediate tax expensing (full deduction in the year of investment) for "flaring and venting mitigation systems" that intake natural gas and process it through various value-added methods, such as compressing the gas for fuel, producing petrochemicals, converting it to electricity, generating computational power, mining digital assets, or powering other oilfield equipment. The tax benefit applies only to U.S. entities and excludes "foreign entities of concern" as defined by a previous innovation act. The tax incentive would become effective for property placed in service after December 31, 2025, and is designed to encourage energy companies to reduce methane emissions and find productive uses for natural gas that would traditionally be wasted through flaring or venting, which are environmentally harmful practices that contribute to greenhouse gas emissions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1188/all-info