Ted Cruz introduces FLARE Act to incentivize Bitcoin mining with waste gas

The American senator Ted Cruz has presented a new bill which offers tax incentives to cryptocurrency minors using flared natural gas to supply the extraction operations.

In a April 1st announcementCruz has unveiled the law on free atmospheric emissions from the facilitating atmospheric, which, according to him, will make Texas the “number one place for Bitcoin exploitation”.

THE Flare Act Proposes a modification of the American tax code which would allow companies to definitively deduct the total cost of the systems designed to capture and reuse natural gas which would be otherwise flared or ventilated.

These systems, called escape and attenuation systems of ventilation, would qualify at 100% expenses from 2026.

To qualify, the equipment must take natural gas and convert it into something useful, such as electricity, liquid fuels or even the power of calculation for the operation of digital assets.

The bill lists several eligible uses, in particular compression or gas liquefant for transport, the production of petrochemicals or fertilizers and to supply the equipment of the oil field or the electrical network.

In addition to incentives, the bill blocks foreign concerns of concern, including those linked to ChinaRussia, Iran or North Korea, to benefit from incentives. This clause aims to maintain tax relief exclusive to American aligned operators and to strengthen the independence of inner energy.

By transforming gas stranded into usable energy, Cruz and the supporters argue that the bill would not only reduce emissions, but also stimulate energy innovation and network resilience, especially during periods of advanced or extreme time.

“This bill benefits from the vast energy potential of Texas, strengthens our position as a home in the Bitcoin industry, and is good for the environment. I call my colleagues to take this legislation quickly,” said Cruz.

The invoice has already resumed support Industry players who consider him a win-win for energy and innovation.

The Bitcoin extraction company, Mara Holdings, approved legislation in an X post, adding that it could reduce emissions and “unlock stranded energy” through Texas and beyond. See below.

Last year, Mara in partnership With NGON to launch a 25-megawatts micro-data center operation through the heads of wells in Texas and Dakota from the North. The data center will use excess natural gas to produce electricity to supply data centers, offering energy producers a high -efficiency solution for methane attenuation.

Under legislation, infrastructure like this would be considered as a flared and ventilation attenuation system, which makes it eligible for permanent full expenses. It means Mara And similar operators could deduct the total cost of installing these systems from their taxable income, from 2026.

Long before presenting the Flare Act, Cruz launched the idea When the Texas 2021 blockchain summit that Bitcoin exploitation could transform the excess energy of oil and gas operations into something useful instead of simply burning it.

“Use this power to exploit Bitcoin. Part of the beauty of this is the moment you do, you help the environment a lot because rather than crushing natural gas, you put it for productive use,” he said at the time.