119-s1188

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1188 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1188

 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.

_______________________________________________________________________

 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.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``Facilitating Lower Atmospheric 
Released Emissions Act'' or the ``FLARE Act''.

SEC. 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.
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