The FLARE Act provides permanent tax breaks for companies that invest in equipment to capture natural gas that would otherwise be burned off (flared) or released (vented) at oil and gas operations. Under the bill, businesses can immediately deduct 100 percent of the costs of installing these capture systems through a process called "full expensing," rather than spreading the deduction over multiple years. The captured gas can be used in various ways, including as fuel, to generate electricity, produce chemicals and fertilizers, or power cryptocurrency mining operations. The tax benefit applies only to U.S.-based companies and does not extend to foreign entities of concern. The law takes effect for equipment installed starting January 1, 2026.
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