FLARE Act Promises Full Tax Expensing to Crypto Miners Capturing Flared Gas

U.S. Senator Ted Cruz (R-TX) announced on March 31 the introduction of the Facilitate Lower Atmospheric Released Emissions (FLARE) Act

A powerful new federal bill offers to provide full tax expensing to crypto miners who capture flared gas, ultimately turning wasted energy into bitcoin-fueled grid dominance.

U.S. Senator Ted Cruz (R-TX) announced on March 31 the introduction of the Facilitate Lower Atmospheric Released Emissions (FLARE) Act. The bill is designed 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.

“This legislation is a critical step in promoting the infrastructure needed to capture stranded natural gas and use it to generate electricity or other valuable outputs, which in turn will create jobs and boost economic activity,” said Senator Cruz. “It is also designed to enhance grid resilience, especially in states like Texas that are major producers of energy.”

The move comes as Cruz spearheads efforts to amplify the role of digital assets in the U.S. financial system. In his role as Ranking Member of the Senate Democrats, Credit Union, and Community Bank members. The measure is also being introduced in the House of Representatives by Rep. Tom Emmer (R-MN).

“I am committed to making Texas the number one place for bitcoin mining,” Cruz added. “The FLARE Act will incentivize entrepreneurs and crypto miners to use natural gas that would otherwise be stranded and put it to good use, creating jobs and economic opportunity in the process.”

The bill includes language to restrict participation by companies owned by foreign adversaries including China, Iran, North Korea, and Russia. It is also designed to safeguard national energy interests while promoting domestic innovation in new technologies.

The legislation has already secured the support of the Digital Power Network, an non-profit organization that focuses on the convergence of digital technology and energy systems.

“The Digital Power Network strongly supports the introduction of the FLARE Act by Senator Cruz and the inclusion of an identical provision in the House tax bill by Chair Ways and Means Kevin Smith and Ranking Member Lloyd Doggett,” saidHailey Miller, Director of Government Relations & Public Policy at the Digital Power Network. “This critical legislation will help eliminate unnecessary flaring and venting of natural gas while unlocking new opportunities for energy innovation in the United States.”

“Bitcoin miners are uniquely positioned to help reduce emissions by harnessing stranded and wasted energy sources, and the FLARE Act ensures that American energy producers have the tools to deploy cutting-edge solutions that make our energy markets more efficient and resilient. We commend Senator Cruz for his leadership and look forward to working with Congress to advance this bill into law.”