This bill amends the severance tax provisions in Louisiana law, specifically R.S. 47:633(7)(d), to introduce a new 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, for gas produced from wells completed before July 1, 2025, the exemption will also extend for twenty-four months or until payout of the well cost is achieved. However, 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 clarifies the definitions of "horizontal drilling" and "horizontal recompletion" and establishes that the payout of well costs will be determined by the Department of Energy and Natural Resources. 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, unless vetoed by the governor and subsequently approved by the legislature.

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