H.B. No. 3159 introduces a severance tax exemption for oil and gas produced from certain previously inactive restimulation wells in Texas. The bill adds Section 202.062 to the Tax Code, defining key terms such as "qualifying well," "restimulation costs," and "operator." It specifies that hydrocarbons produced from a qualifying well are exempt from taxes imposed by Chapter 201 and the current chapter until either the last day of the 36th consecutive month following the well's first production after restimulation or until the cumulative amount of exempted taxes reaches a specified limit. The bill outlines the criteria for a well to qualify for this exemption, including the requirement for certification by the Railroad Commission of Texas.

Additionally, the bill establishes penalties for individuals who submit false information or attempt to claim exemptions for wells that do not qualify. The attorney general is authorized to recover these penalties on behalf of the state. The provisions of this act will apply only to hydrocarbons produced on or after January 1, 2026, and it does not affect tax liabilities that accrued before this date. The act is set to take effect on January 1, 2026.

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