Bill > SB1211

This bill amends the Texas Tax Code to expand a sales and use tax exemption related to water processing for hydraulic fracturing (fracking) operations. Specifically, the bill modifies existing tax exemptions for water-related equipment and supplies by clarifying that tangible personal property used to process, reuse, or recycle water (other than freshwater) for fracturing work at oil or gas wells will be tax-exempt. The bill defines "freshwater" as water containing less than 1,000 milligrams per liter of total dissolved solids, which means the tax exemption now applies to processing and recycling water with higher mineral content. The amendment aims to incentivize water recycling in the oil and gas industry by reducing the tax burden on equipment used to handle and reuse water in fracking operations. The bill will take effect on September 1, 2025, and will not retroactively affect tax liabilities that accrued before its effective date.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1211