Key Takeaways
- Senator Ted Cruz introduced the FLARE Act to repurpose flared gas for bitcoin mining.
- The bill offers immediate tax deductions for companies investing in conversion infrastructure.
- Foreign entities from adversarial nations are barred from participating in the program.
Texas Senator Ted Cruz has introduced the FLARE Act, a bill aimed at reducing emissions by incentivizing the use of flared or vented natural gas for productive purposes—particularly bitcoin mining.
Announced on April 1, the legislation targets “stranded” natural gas, often wasted due to transportation challenges, by converting it into electricity or computational power.
Tax incentives for companies
Under the bill, companies that invest in infrastructure to repurpose flared gas can immediately deduct the full cost from their taxable income.
Eligible uses include generating electricity, producing petrochemicals, or powering data centers for bitcoin mining.
The bill explicitly excludes entities from China, Russia, Iran, and North Korea to ensure economic benefits remain within the U.S.
Senator Cruz’s vision
Cruz said:
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.
Encouraging private investment
The FLARE Act is designed to encourage private investment in energy infrastructure while promoting environmental benefits.
Bitcoin mining firms such as MARA Holdings have already begun implementing this model by operating micro data centers powered by excess gas in Texas and North Dakota.
Industry support
Industry voices are supporting the bill.
Hailey Miller of the Digital Power Network stated:
This critical legislation will help eliminate unnecessary flaring and venting of natural gas while unlocking new opportunities for energy innovation in the United States.
Current status
The FLARE Act is currently under review in the Senate Finance Committee.
