This bill amends R.S. 47:633(7)(d) to provide a severance tax exemption for oil and gas produced from horizontally drilled wells. The exemption for oil will last for a period of twenty-four months or until the well cost is paid off, whichever comes first. Additionally, the bill introduces a new exemption for gas produced from wells completed before July 1, 2025, which will also extend for twenty-four months or until payout of the well cost is achieved. For gas produced from wells completed on or after July 1, 2025, the exemption period will be reduced to eighteen months or until payout of the well cost is achieved.

The bill defines "horizontal drilling" and "horizontal recompletion" to clarify the types of drilling that qualify for the exemption. The provisions of this Act will apply to taxable periods beginning on or after July 1, 2025, and it will become effective on that date, or the day following legislative approval if vetoed by the governor.

Statutes affected:
HB495 Original: 47:633(7)
HB495 Engrossed: 47:633(7)
HB495 Enrolled: 47:633(7)
HB495 Act 284: 47:633(7)