United States Senator Ted Cruz has introduced a new bill that offers tax incentives for cryptocurrency miners using flared natural gas to power mining operations.

In an April 1 announcement, Cruz unveiled the Facilitating Lower Atmospheric Released Emissions Act, which he believes will make Texas the “number one place for Bitcoin mining.”

United States Senator Ted Cruz has introduced legislation that would offer tax incentives for cryptocurrency miners using flared natural gas to power mining operations.

The Facilitating Lower Atmospheric Released Emissions Act, introduced by Cruz on April 1, would also block foreign entities of concern, such as those with ties to China, Russia, Iran, or North Korea, from benefiting from the bill’s provisions.

The bill proposes modifying the U.S. tax code to allow companies to permanently deduct the full cost of systems designed to capture and repurpose natural gas that would otherwise be flared or vented.

These systems, designated as flaring and venting mitigation systems, would qualify for 100% expensing beginning in 2026. To qualify, the equipment must take in natural gas and convert it into something usable, such as electricity, liquid fuels, or computational power for digital asset mining.

The bill specifies several eligible uses, including compressing or liquefying gas for transportation, producing petrochemicals or fertilizer, and powering oilfield equipment or the electrical grid.

Several industry players have expressed support for the bill, which they view as a win-win for both energy and innovation.

Bitcoin mining firm MARA (NYSE:MARA) Holdings threw its support behind the legislation in an X post, highlighting that it could aid in reducing emissions and “unlock stranded energy” across Texas and beyond.

The FLARE Act from Sen. @tedcruz allows full expensing for infrastructure that captures and repurposes flared gas into value-added uses—like Bitcoin mining.MARA supports this legislation. It recognizes Bitcoin mining’s role in reducing emissions and unlocking stranded energy.

Last year, MARA partnered with NGON to launch a 25-megawatt micro data center operation across wellheads in Texas and North Dakota. The data center will use excess natural gas to generate electricity for data centers, offering energy producers a high-efficiency solution for methane mitigation.

As part of the partnership, MARA is deploying eight units of the iBTC-M1 mobile data center to process gas at multiple wellheads in Texas. The data centers can be rapidly deployed to areas with excess gas, offering a flexible and efficient solution.

Each iBTC-M1 unit is powered by eight advanced Bitcoins (BTC) Avalon 1246 ASIC miners, selected for their high energy efficiency and ability to operate in diverse environmental conditions. The data centers are also equipped with state-of-the-art cooling systems to ensure optimal performance in varying temperatures.

Moreover, MARA is deploying two units of the iBTC-L large data center, each with a capacity of 12 megawatts. These units are designed for periods of peak demand or extreme weather, where additional computational power is needed.

Under the legislation, infrastructure like this would qualify as a flaring and venting mitigation systems, making it eligible for permanent full expensing. That means MARA and similar operators could deduct the entire cost of installing such systems from their taxable income, starting in 2026.

The bill aims to incentivize U.S. companies to invest in technologies that can reduce emissions and increase energy efficiency. It also seeks to prevent foreign entities of concern from benefiting from the tax breaks.

“This bill takes advantage of Texas’s vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment. I call upon my colleagues to expeditiously take up and advance this legislation,” said Sen. Cruz, a member of the U.S. Senate Finance Committee.

Long before introducing the FLARE Act, Cruz touched upon the idea at the 2021 Texas Blockchain Summit, suggesting that Bitcoin mining could transform excess energy from oil and gas operations into something useful instead of simply burning it off.

“Use that power to mine Bitcoin. Part of the beauty of that is the instant you’re doing it you’re helping the environment enormously because rather than flaring the natural gas you’re putting it to productive use,” he noted at the time.