House Bill No. by Representative Geymann amends the severance tax regulations in Louisiana, specifically targeting the exemption for gas produced from horizontally drilled wells. The bill retains the existing exemption for oil, which lasts for 24 months or until the payout of the well cost is achieved. However, it introduces a significant change for gas, limiting the exemption period to just six months or until the payout of the well cost is achieved, whichever comes first. This adjustment aims to reduce the duration of the severance tax exemption for gas, thereby increasing tax revenue from this resource.

The provisions of the bill will apply to taxable periods beginning on or after July 1, 2025, and it will become effective on the same date. The bill clarifies definitions related to horizontal drilling and recompletion, ensuring that the terms are well understood within the context of the severance tax framework. Overall, the legislation seeks to balance the interests of the state in collecting severance taxes while still providing some level of incentive for oil and gas production through horizontal drilling techniques.

Statutes affected:
HB495 Original: 47:633(7)