II
119THCONGRESS
1
STSESSION 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
MARCH27, 2025
Mr. C
RUZintroduced 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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Facilitating Lower At-4
mospheric Released Emissions Act’’ or the ‘‘FLARE Act’’. 5
VerDate Sep 11 2014 01:13 Apr 15, 2025 Jkt 059200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1188.IS S1188
ssavage on LAPJG3WLY3PROD with BILLS 2
•S 1188 IS
SEC. 2. PERMANENT FULL EXPENSING OF COSTS RELATED 1
TO FLARING AND VENTING MITIGATION SYS-2
TEMS. 3
(a) I
NGENERAL.—Section 168(k) of the Internal 4
Revenue Code of 1986 is amended by adding at the end 5
the following new paragraph: 6
‘‘(11) P
ERMANENT EXPENSING OF COSTS RE -7
LATED TO FLARING AND VENTING MITIGATION SYS -8
TEMS.— 9
‘‘(A) I
N GENERAL.—In the case of any ap-10
plicable energy property— 11
‘‘(i) paragraph (8) shall not apply, 12
and 13
‘‘(ii) the applicable percentage shall be 14
100 percent. 15
‘‘(B) A
PPLICABLE ENERGY PROPERTY .— 16
‘‘(i) I
N GENERAL.—For purposes of 17
this paragraph, the term ‘applicable energy 18
property’ means any qualified property (as 19
determined as if clause (iii) of paragraph 20
(2)(A) did not apply with respect to such 21
property) which is a flaring and venting 22
mitigation system. 23
‘‘(ii) F
LARING AND VENTING MITIGA -24
TION SYSTEM.—For purposes of this sub-25
paragraph, the term ‘flaring and venting 26
VerDate Sep 11 2014 01:13 Apr 15, 2025 Jkt 059200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1188.IS S1188
ssavage on LAPJG3WLY3PROD with BILLS 3
•S 1188 IS
mitigation system’ means a system 1
which— 2
‘‘(I) intakes natural gas, and 3
‘‘(II) separates, collects, utilizes, 4
or combusts methane and heavier hy-5
drocarbons by— 6
‘‘(aa) compressing or lique-7
fying gas for use as fuel or trans-8
port to a processing facility, 9
‘‘(bb) production of petro-10
chemicals or fertilizer, 11
‘‘(cc) conversion to liquid 12
fuels, 13
‘‘(dd) conversion to elec-14
tricity for electricity-driven activi-15
ties or supply to the electrical 16
grid, 17
‘‘(ee) conversion to computa-18
tional power, 19
‘‘(ff) mining for digital as-20
sets, or 21
‘‘(gg) powering other oilfield 22
equipment. 23
‘‘(C) F
OREIGN ENTITY OF CONCERN .— 24
VerDate Sep 11 2014 01:13 Apr 15, 2025 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1188.IS S1188
ssavage on LAPJG3WLY3PROD with BILLS 4
•S 1188 IS
‘‘(i) IN GENERAL.—This paragraph 1
shall not apply to any property placed in 2
service by any foreign entity of concern. 3
‘‘(ii) D
EFINITION.—In this paragraph, 4
the term ‘foreign entity of concern’ has the 5
meaning given that term in section 6
10612(a) of the Research and Develop-7
ment, Competition, and Innovation Act (42 8
U.S.C. 19221(a)).’’. 9
(b) C
ONFORMING AMENDMENT.—Section 10
168(k)(6)(A) of the Internal Revenue Code of 1986 is 11
amended by inserting ‘‘or paragraph (11)’’ after ‘‘this 12
paragraph’’. 13
(c) E
FFECTIVEDATE.—The amendments made by 14
this section shall apply to property placed in service after 15
December 31, 2025. 16
Æ
VerDate Sep 11 2014 01:13 Apr 15, 2025 Jkt 059200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1188.IS S1188
ssavage on LAPJG3WLY3PROD with BILLS