House Bill No. 600 proposes amendments to the severance tax rates on oil produced in Louisiana, specifically targeting oil from newly completed wells and certain limited-production wells. The bill reduces the severance tax rate from 12.5% to 6.5% for oil produced from wells completed on or after July 1, 2025. Additionally, it establishes special rates for oil produced from incapable wells, stripper wells, inactive wells, and orphan wells, adjusting these rates to 6.25% and 3.125% depending on the classification of the well and the circumstances of production.

The bill also clarifies definitions and conditions under which these special rates apply, including the requirement for wells to be certified by the Department of Revenue as incapable or as stripper wells. The changes aim to provide a more favorable tax environment for oil production in Louisiana, particularly for new and limited-production wells, while ensuring that the tax structure remains clear and enforceable. The provisions of this act will take effect on July 1, 2025, and will apply to taxable periods beginning on or after that date.

Statutes affected:
HB600 Original: 47:633(7)