Bill > HB4382

This bill amends the Texas Tax Code to expand a sales and use tax exemption for water-related equipment used in hydraulic fracturing (fracking) operations. Specifically, the bill modifies an existing exemption to clarify 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. By making this change, the bill aims to provide a tax incentive for water recycling in the oil and gas industry, which can help reduce the use of fresh water resources. The tax exemption will apply to equipment, services, and supplies specifically used in this water processing and reuse context. The bill will take effect on September 1, 2025, and will not affect tax liabilities that accrued before its effective date, ensuring that existing tax obligations remain unchanged.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB4382