Senator Ted Cruz's Bold Move: Tax Breaks for Crypto Miners Using Flared Gas

Cruz's FLARE Act Aims to Make Texas the Bitcoin Mining Capital

Hold onto your hats, folks! U.S. Senator Ted Cruz just dropped a bombshell with a new bill that's set to supercharge the crypto mining scene. The man's offering juicy tax incentives for miners who use flared natural gas to power their operations. It's a game-changer!

On April 1, Cruz unleashed the Facilitating Lower Atmospheric Released Emissions Act, or FLARE Act for short. He's gunning to make Texas the undisputed "number one place for Bitcoin mining." You heard it here first!

The FLARE Act is all about shaking up the U.S. tax code. It's proposing a permanent deduction for the full cost of systems that capture and repurpose natural gas that would otherwise be flared or vented into the atmosphere. Talk about a win for the environment and the crypto world!

Starting in 2026, these flaring and venting mitigation systems will be eligible for 100% expensing. That's right, miners can write off the whole shebang!

But there's a catch - the equipment's got to convert that gas into something useful. We're talking electricity, liquid fuels, or even the computational power needed for digital asset mining. It's a triple threat!

The bill's got a whole laundry list of eligible uses, from compressing or liquefying gas for transport to producing petrochemicals or fertilizer, and even powering oilfield equipment or the electrical grid. The possibilities are endless!

And get this - the bill's got a patriotic twist. It blocks any foreign entities of concern, especially those tied to China, Russia, Iran, or North Korea, from cashing in on these incentives. It's all about keeping the tax break exclusive to U.S.-aligned operators and beefing up domestic energy independence.

Cruz and his supporters are pumped about this bill. They say it's not just about cutting emissions, but also about boosting energy innovation and grid resilience, especially during those crazy peak demand or extreme weather moments.

"This bill takes advantage of Texas's vast energy potential, reinforces our position as the home of the Bitcoin industry, and is good for the environment. I call upon my colleagues to expeditiously take up and advance this legislation," Cruz declared. The man's on a mission!

And guess what? Industry players are already jumping on the bandwagon. They see this as a win-win for both energy and innovation.

Bitcoin mining firm MARA Holdings is all in on the FLARE Act. They took to social media to say it could reduce emissions and "unlock stranded energy" across Texas and beyond. They're ready to ride this wave!

Last year, MARA teamed up with NGON to launch a mind-blowing 25-megawatt micro data center operation across wellheads in Texas and North Dakota. They're using excess natural gas to generate electricity for data centers, giving energy producers a high-efficiency solution for methane mitigation. It's a match made in heaven!

And under the FLARE Act, infrastructure like this would be golden. It'd qualify as a flaring and venting mitigation system, making it eligible for permanent full expensing. That means MARA and similar operators could deduct the entire cost of setting up shop from their taxable income, starting in 2026. Cha-ching!

But this isn't Cruz's first rodeo. Way back in 2021, at the Texas Blockchain Summit, he floated the idea of using Bitcoin mining to turn excess energy from oil and gas operations into something useful instead of just burning it off.

"Use that power to mine Bitcoin. Part of the beauty of that is the instant you're doing it you're helping the environment enormously because rather than flaring the natural gas you're putting it to productive use," he said at the time. The man's been ahead of the curve!