Bill · S. 1188· Senate(119-S-1188)
FLARE Act
- Introduced
- 3/27/2025
- Last activity
- 3/27/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Ted Cruz
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The FLARE Act aims to amend the Internal Revenue Code of 1986 regarding property costs. It proposes permanent full expensing for property used in flaring and venting mitigation systems. These systems are designed to capture gas that would otherwise be flared or vented to be used in value-added products. The bill defines these systems through various methods of gas utilization, including fuel transport, petrochemical production, and electricity conversion. The provisions specifically exclude property placed in service by any foreign entity of concern.
Yes· 3 of 7
Does this cut the pollution that drives climate change?+5
The bill incentivizes technology that captures gas that would otherwise be flared or vented, potentially reducing methane emissions.
Would business owners be better off under this?+5
The bill provides significant tax advantages for energy industry business owners investing in mitigation systems.
Does this better protect air, water and wildlife?+4
By targeting flaring and venting, the bill encourages more controlled and useful gas management.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Full Expensing of Mitigation Systems: The bill allows for 100 percent expensing of costs related to flaring and venting mitigation systems under Section 2(a). This could benefit those involved in energy property by allowing the full cost of systems that intake natural gas to separate, collect, utilize, or combust methane and heavier hydrocarbons.
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Gas Utilization Capabilities: The bill defines mitigation systems to include technologies that convert gas for various uses such as fuel, petrochemicals, fertilizer, electricity, computational power, or powering oilfield equipment under Section 2(a)(B)(ii). This allows for the capture of gas for several productive purposes.
Potential Negative Impacts for People
- Restrictions on Foreign Entities: The bill states that the permanent expensing paragraph shall not apply to any property placed in service by a foreign entity of concern under Section 2(a)(C)(i). This means certain entities would not be able to utilize these specific tax provisions.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Environment Energy And Infrastructure
- Reduces Carbon Emissions+5Improves Environmental Protections+4Reduces Gas Prices+1
- Economy And Finance
- Improves Economic Growth+3Increases Job Creation+3
- Demographic And Interest Groups
- Good For Business Owners+5
- Governance And Ideology
- Increases Federal Power+1
- 3/27/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate