S.1188 - Facilitating Lower Atmospheric Released Emissions Act; FLARE Act (119th Congress)
Summary
The FLARE Act (S.1188) aims to amend the Internal Revenue Code of 1986 to provide permanent full expensing for property used to capture gas that would otherwise be flared or vented. This incentivizes the use of captured gas in value-added products. The bill was introduced in the Senate on March 27, 2025, by Mr. Cruz and referred to the Committee on Finance.
Expected Effects
If enacted, the FLARE Act would likely lead to increased investment in flaring and venting mitigation systems. This would reduce the amount of greenhouse gases released into the atmosphere. It could also stimulate the development of new technologies and industries focused on utilizing captured gas.
Potential Benefits
- Encourages reduction of flared and vented gas, decreasing greenhouse gas emissions.
- Promotes the development and deployment of technologies for capturing and utilizing natural gas.
- Could lead to the creation of new jobs in the energy sector related to gas capture and processing.
- Provides a financial incentive for companies to invest in environmentally friendly practices.
- May increase the supply of natural gas for various uses, potentially lowering energy costs.
Potential Disadvantages
- The full expensing provision could reduce government tax revenue.
- The definition of 'applicable energy property' might be too broad or too narrow, leading to unintended consequences or loopholes.
- The focus on specific technologies might disincentivize the development of alternative solutions.
- Potential for increased reliance on natural gas, which is still a fossil fuel.
- The exclusion of 'foreign entities of concern' could create trade complications or limit access to certain technologies.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the general welfare clause of the Constitution (Preamble), as it aims to promote environmental protection and economic development. Article I, Section 8, grants Congress the power to lay and collect taxes, duties, imposts, and excises, which implicitly includes the power to create tax incentives. However, the specific details of the bill would need to be carefully examined to ensure they do not violate any other constitutional provisions, such as the equal protection clause or the commerce clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).