S. 1188

119 S1188 IS: Facilitating Lower Atmospheric Released Emissions Act
 U.S. Senate
 2025-03-27
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 1188  IN THE SENATE OF THE UNITED STATES   March 27, 2025   Mr. Cruz  introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to provide for permanent full expensing for property used to capture gas that would otherwise be flared or vented and to use such gas in value-added products.
1.
Short title
This Act may be cited as the   Facilitating Lower Atmospheric Released Emissions Act   or the   FLARE Act  .
2.
Permanent full expensing of costs related to flaring and venting mitigation systems
(a)
In general
 Section 168(k)  of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:
(11)
Permanent expensing of costs related to flaring and venting mitigation systems
(A)
In general
In the case of any applicable energy property—
(i)
paragraph (8) shall not apply, and
(ii)
the applicable percentage shall be 100 percent.
(B)
Applicable energy property
(i)
In general
For purposes of this paragraph, the term  applicable energy property  means any qualified property (as determined as if clause (iii) of paragraph (2)(A) did not apply with respect to such property) which is a flaring and venting mitigation system.
(ii)
Flaring and venting mitigation system
For purposes of this subparagraph, the term  flaring and venting mitigation system  means a system which—
(I)
intakes natural gas, and
(II)
separates, collects, utilizes, or combusts methane and heavier hydrocarbons by—
(aa)
compressing or liquefying gas for use as fuel or transport to a processing facility,
(bb)
production of petrochemicals or fertilizer,
(cc)
conversion to liquid fuels,
(dd)
conversion to electricity for electricity-driven activities or supply to the electrical grid,
(ee)
conversion to computational power,
(ff)
mining for digital assets, or
(gg)
powering other oilfield equipment.
(C)
Foreign entity of concern
(i)
In general
This paragraph shall not apply to any property placed in service by any foreign entity of concern.
(ii)
Definition
In this paragraph, the term  foreign entity of concern  has the meaning given that term in section 10612(a) of the Research and Development, Competition, and Innovation Act ( 42 U.S.C. 19221(a) ).
 .
(b)
Conforming amendment
 Section 168(k)(6)(A)  of the Internal Revenue Code of 1986 is amended by inserting  or paragraph (11)  after  this paragraph .
(c)
Effective date
The amendments made by this section shall apply to property placed in service after December 31, 2025.