US SB1188

Amends Internal Revenue Code Section 168(k) to provide permanent 100% full expensing for flaring and venting mitigation systems, allowing businesses to immediately deduct the full cost of qualifying equipment in the year it is placed in service

Qualifying systems must intake natural gas and separate, collect, utilize, or combust methane and heavier hydrocarbons through specified methods including compression/liquefaction, petrochemical or fertilizer production, conversion to liquid fuels, electricity generation, computational power, digital asset mining, or powering oilfield equipment

Excludes foreign entities of concern from eligibility, as defined under the Research and Development, Competition, and Innovation Act (42 U.S.C. 19221(a))

Applies to property placed in service after December 31, 2025