HB 121

 2026  26LSO-0034
                             STATE OF WYOMING
                             HOUSE BILL NO. HB0121
 Hydrogen severance taxation.
 Sponsored by: Representative(s) Campbell, K
                                    A BILL
                                      for
1 AN ACT relating to mine product taxes; providing for the
2 taxation of hydrogen production as  specified; specifying
3 tax    rates    for    different    types    of   hydrogen      production;
4 providing      for    the   administration   of    the   tax;   specifying
5 applicability; and providing for an effective date.
6
7 Be It Enacted by the Legislature of the State of Wyoming:
8
9Section 1.      W.S. 39-14-213 is created to read:
10
1139-14-213.      Taxation of certain hydrogen production.
12
13(a)     As used in this section:
14
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1(i)     "Feedstock" means the raw material used to
2 produce      hydrogen    and   includes     without    limitation    water,
3 biomass, natural gas and other fossil fuels;
4
5(ii)    "Hydrogen"        means    hydrogen       subject    to
6 taxation under this section;
7
8(iii)     "Hydrogen production" means the separation
9 or extraction of hydrogen from a feedstock;
10
11(iv)    All other definitions in W.S. 39-14-201 are
12 incorporated herein by reference to the extent that they
13 may apply.
14
15(b)    Administration,      confidentiality:       The     department
16 shall annually value and assess hydrogen production at its
17 fair   market       value   for   taxation      in   accordance    with   the
18 applicable provisions of W.S. 39-14-202.
19
20(c)    Taxable event: There is levied a severance tax on
21 the value of the gross product of hydrogen resulting from
22 hydrogen production in this state. The tax imposed by this
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1 subsection shall be in addition to all other taxes imposed
2 by law.
3
4(d)   Basis    of     tax:    Hydrogen      shall     be     valued   for
5 taxation as natural gas as provided in W.S. 39-14-203(b).
6
7(e)   Taxpayer:       Any     person       engaging        in    hydrogen
8 production    or,    to    the     extent    of   the    person's      ownership
9 interest, any person owning an interest in the hydrogen, is
10 liable for the payment of the severance tax together with
11 any    penalties     and   interest.        Nothing     in   this      subsection
12 shall be deemed to require the tax to be paid more than one
13 (1) time for the same gross product as provided in this
14 section.
15
16(f)   Tax     rate:    Hydrogen        resulting       from      hydrogen
17 production shall be subject to the following severance tax
18 rates:
19
20(i)    Except as provided in paragraph (ii) of this
21 subsection, hydrogen produced from water shall be subject
22 to a severance tax rate of nine percent (9%);
23
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1(ii)     Hydrogen produced from by-product water as
2 defined      in   W.S.   41-3-903     or   hydrogen    produced      from   any
3 feedstock or source other than water shall be subject to a
4 severance tax rate of three percent (3%).
5
6(g)    Exemptions: The exemptions from taxation provided
7 by W.S. 39-14-205 for natural gas shall apply to hydrogen
8 under this section.
9
10(h)    Compliance, collection procedures: The severance
11 tax related provisions of W.S. 39-14-207 shall apply to
12 hydrogen production.
13
14(j)    Enforcement: All severance tax related provisions
15 of W.S. 39-14-208 shall apply to hydrogen production.
16
17(k)    Taxpayer     remedies:       All   severance     tax    related
18 provisions        of   W.S.    39-14-209     shall    apply    to    hydrogen
19 production.
20
21(m)    Distribution:  Severance     tax     revenues  from
22 hydrogen     production       shall   be   distributed    as   provided       by
23 W.S. 39-14-211.
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1
2Section   2.   This   act       shall   apply   to   all   hydrogen
3 production occurring on or after July 1, 2026.
4
5Section 3.     This act is effective July 1, 2026.
6
7(END)
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