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WY HB0121

WY HB0121
Hydrogen severance taxation.


summary

Introduced
02/10/2026
In Committee
Crossed Over
Passed
Dead
03/03/2026

Introduced Session

2026 Budget Session

Bill Summary

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

AI Summary

This bill establishes a new severance tax on hydrogen production in Wyoming, defining "feedstock" as the raw material used to create hydrogen, such as water, biomass, or natural gas, and "hydrogen production" as the process of separating hydrogen from that feedstock. The tax will be administered and collected similarly to taxes on natural gas, with hydrogen valued for taxation at its fair market value, and the tax will be levied on the value of the gross product of hydrogen. The bill specifies different tax rates depending on the source of the hydrogen: a 9% severance tax for hydrogen produced from water, and a 3% severance tax for hydrogen produced from by-product water (water already used in another industrial process) or any other source besides pure water. Existing exemptions for natural gas taxation will also apply to hydrogen, and the tax will be effective for all hydrogen production occurring on or after July 1, 2026.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

H:Died in Committee Returned Bill Pursuant to HR 5-4 (on 03/03/2026)

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