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 $750,000. 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 regarding the exemption and for those who apply for an exemption for wells that do not qualify. The civil penalty may not exceed $10,000 plus any difference between taxes paid and taxes due. The bill also stipulates that it will only apply to hydrocarbons produced on or after January 1, 2026, and that any tax liabilities incurred before this date will remain unaffected. The act is set to take effect on January 1, 2026.

Statutes affected:
Introduced: ()
House Committee Report: ()
Engrossed: ()
Senate Committee Report: ()
Enrolled: ()