FLARE Act to repurpose flared gas for Bitcoin mining proposed
Texas Senator Ted Cruz introduced legislation to use flared Natural Gas for Bitcoin mining
The bill, called the Facilitating Lower Atmospheric Released Emissions (FLARE) Act, proposes using natural gas produced during oil drilling operations and is normally just burned off, to power BTC mining operations. Full expensing would allow companies to deduct the cost of qualified property immediately rather than depreciating it over several years. Which is a huge tax advantage and could be just the incentive to encourage more Crypto miners to move operations to the USA. This feels like a two-for-one win - cuts down on energy waste while encouraging entrepreneur investment.
The proposed bill would require modification of IRS code that has been in place since 1986.
You can read more about it here. Companies investing in systems to reduce flaring and venting would qualify for complete tax deductions, not subsidies. Bringing flexible solutions that benefit the limited resources that are the power grids. This would benefit all digital asset miners not just BTC and can be used to also outright generate electricity.
Defined Use cases
- generating electricity
- powering data centers for bitcoin mining
- producing petrochemicals
Other important call out items in the bill
This bill explicitly excludes entities from China, North Korea, Iran, and Russia to ensure economic benefits remain within the U.S.
Next Step for the bill
The FLARE Act is currently under review in the Senate Finance Committee.
Summary
Ted Cruze's FLARE Act incentivizes entrepreneurs to be innovative and crypto miners to use natural gas that would otherwise be stranded. While designed to encourage private investment in energy infrastructure while promoting environmental benefits. I suspect this bill will get ratified further legitimizing the entire Crypto industry here in the USA
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