The FLARE Act proposes tax incentives for companies repurposing flared gas into digital asset mining infrastructure

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The bill, called the Facilitating Lower Atmospheric Released Emissions (FLARE) Act, proposes using natural gas produced during oil drilling operations and providing incentives through tax advantages. Full expensing would allow companies to deduct the cost of qualified property immediately rather than depreciating it over several years.

According to the text of the bill, the FLARE Act proposed amending the US Internal Revenue Code to incentivize market participants — including digital asset miners — to “capture gas that would otherwise be flared or vented and to use such gas in value-added products.” If signed into law, the legislation would take effect on properties put into service starting in 2026.