HB0161

Failed

Hydrogen severance tax.

Establish a severance tax on hydrogen production at specified rates based on production type.

Full legal title

AN ACT relating to mine product taxes; providing for the taxation of certain hydrogen production; specifying tax rates for different types of hydrogen production; providing for the administration of the tax; specifying applicability; and providing for an effective date.

Energy Taxes

Sponsor:

Co-sponsors: Representative(s) Clouston, Davis, Larson, JT, Lawley, Senator(s) Barlow, Boner

View on wyoleg.gov Introduced Text (PDF)Digest (PDF)Fiscal Note (PDF)

What does this bill do?

Establishes a severance tax on hydrogen production in Wyoming, with rates varying by production method.

Defines hydrogen as hydrogen separated from water produced from the ground, subject to taxation under this section. (W.S. 39-14-213(a))
Requires the Department to annually value and assess hydrogen production at fair market value for taxation purposes. (W.S. 39-14-213(b))
Levies a severance tax on the gross product value of hydrogen production in the state, in addition to all other taxes imposed by law. (W.S. 39-14-213(c))
Values hydrogen for taxation purposes using the natural gas valuation method. (W.S. 39-14-213(d), W.S. 39-14-203(b))
Establishes severance tax rates of 3% for hydrogen produced from by-product water and 6% for all other hydrogen produced from water. (W.S. 39-14-213(f))
Makes any person engaging in hydrogen production or owning an interest in hydrogen liable for severance tax payment, with the tax imposed only once. (W.S. 39-14-213(e))
Applies natural gas tax exemptions to hydrogen production and incorporates natural gas administration, compliance, collection, enforcement, and taxpayer remedy provisions. (W.S. 39-14-213(g), W.S. 39-14-213(h), W.S. 39-14-213(j), W.S. 39-14-213(k))
Distributes severance tax revenues from hydrogen production according to existing severance tax distribution provisions. (W.S. 39-14-213(m), W.S. 39-14-211)

Effective: July 1, 2025

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Actions (5)

3/3/2025(House)

H:Died in Committee Returned Bill Pursuant to HR 5-4

2/7/2025(House)

H No report prior to CoW Cutoff

1/20/2025(House)

H Introduced and Referred to H09 - Minerals

1/14/2025(House)

H Received for Introduction

1/13/2025(LSO)

Bill Number Assigned