Read twice and referred to the Committee on Finance.
The FLARE Act amends Section 168(k) of the Internal Revenue Code to allow 100% expensing (permanent full expensing) for qualifying "flaring and venting mitigation systems" placed in service after December 31, 2025.
It defines eligible systems as those that intake natural gas and separate, collect, utilize, or combust methane and heavier hydrocarbons for uses including fuel transport, petrochemical or fertilizer production, conversion to liquid fuels, electricity generation, powering oilfield equipment, conversion to computational power, and mining for digital assets.
The provision excludes property placed in service by a defined "foreign entity of concern."
Narrow tax incentive with plausible bipartisan supporters but fiscal cost, fossil-fuel subsidy optics, and crypto inclusion raise opposition risks.
Relative to its intended legislative type, this bill clearly and directly amends the Internal Revenue Code to create a permanent 100% expensing allowance for specified 'flaring and venting mitigation systems,' supplies a functional definition of covered property and a limited exclusion for 'foreign entity of concern,' and specifies an effective date. The statutory insertion is structured to integrate into section 168(k) and includes a conforming amendment point.
Progressives stress fossil-subsidy and climate lock-in risks
Progressives stress fossil-subsidy and climate lock-in risks
Generally supportive of methane-emission reduction but wary of giving a permanent tax subsidy to fossil-fuel infrastructure.
Concerned the definition allows support for fossil-lock in and energy-intensive activities like crypto mining.
Favors targeted incentives to reduce methane waste if fiscally responsible and well-targeted.
Seeks guardrails to prevent unintended subsidies or loopholes.
Likely favorable because it provides business-friendly, immediate tax relief and supports domestic energy use.
National-security carve-out for foreign entities is also appreciated.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Narrow tax incentive with plausible bipartisan supporters but fiscal cost, fossil-fuel subsidy optics, and crypto inclusion raise opposition risks.
The bill has not accumulated any surfaced votes yet.
Progressives stress fossil-subsidy and climate lock-in risks
Narrow tax incentive with plausible bipartisan supporters but fiscal cost, fossil-fuel subsidy optics, and crypto inclusion raise oppositio…
Relative to its intended legislative type, this bill clearly and directly amends the Internal Revenue Code to create a permanent 100% expensing allowance for specified 'flaring and venting mitigation systems,' supplies…
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