The bill, S.B. No. 1211, proposes an amendment to Section 151.355 of the Texas Tax Code, specifically regarding exemptions from sales and use taxes for certain tangible personal property used in hydraulic fracturing. The amendment introduces a new exemption for tangible personal property that is specifically used to process, reuse, or recycle water, other than freshwater, for fracturing work at oil or gas wells. Additionally, the bill defines "freshwater" as water containing less than 1,000 milligrams per liter of total dissolved solids.

The bill clarifies that the new provisions will not affect any tax liabilities that accrued before the effective date of the Act, which is set for September 1, 2025. This means that any tax obligations incurred prior to this date will remain enforceable under the previous law. Overall, the bill aims to support hydraulic fracturing operations by providing tax relief for specific water-related equipment and services.

Statutes affected:
Introduced: Tax Code 151.355 (Tax Code 151)