HB0121

Establishes a severance tax on hydrogen production in Wyoming, with differing tax rates based on the feedstock source.

• Creates a severance tax on hydrogen produced in Wyoming, defining hydrogen production as the separation or extraction of hydrogen from feedstock sources including water, biomass, natural gas, and other fossil fuels. (W.S. 39-14-213(a), W.S. 39-14-213(c))
• Establishes a 9% severance tax rate on hydrogen produced from water, and a 3% tax rate on hydrogen produced from by-product water or any other feedstock source. (W.S. 39-14-213(f))
• Requires the Department of Revenue to annually value and assess hydrogen production at fair market value using the same valuation method applied to natural gas under existing tax law. (W.S. 39-14-213(b), W.S. 39-14-213(d))
• Establishes that any person engaged in hydrogen production or owning an interest in hydrogen is liable for severance tax payment, with a requirement that the tax be paid only once per unit of hydrogen produced. (W.S. 39-14-213(e))
• Applies existing natural gas severance tax exemptions to hydrogen production under this new tax structure. (W.S. 39-14-213(g), W.S. 39-14-205)
• Applies existing severance tax compliance, collection, enforcement, and taxpayer remedy provisions to hydrogen production. (W.S. 39-14-213(h), W.S. 39-14-213(j), W.S. 39-14-213(k))
• Directs that hydrogen severance tax revenues be distributed according to the same distribution method used for other severance tax revenues. (W.S. 39-14-213(m), W.S. 39-14-211)

Effective: July 1, 2026

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