S. 1188 — FLARE Act

This section establishes permanent 100% bonus depreciation under IRC §168(k) for qualified flaring and venting mitigation systems placed in service after December 31, 2025 (from the otherwise applicable 20% rate in 2026 and 0% thereafter). A flaring and venting mitigation system intakes natural gas and separates, collects, utilizes, or combusts methane and heavier hydrocarbons (e.g., by compressing or liquefying gas for fuel or transport, producing petrochemicals or fertilizer, converting to liquid fuels or electricity, mining digital assets, or powering oilfield equipment). The provision excludes any such property placed in service by a foreign entity of concern (as defined in 42 U.S.C. 19221(a), i.e., certain foreign terrorist organizations, specially designated nationals, entities controlled by specified foreign adversaries, or others engaged in activities detrimental to U.S. national security).