The bill amends Section 151.355 of the Texas Tax Code to provide an exemption from sales and use taxes for certain tangible personal property used in hydraulic fracturing. Specifically, it adds a new provision that allows for the exemption of tangible personal property used to process, reuse, or recycle water, specifically excluding freshwater, that will be utilized in fracturing work at oil or gas wells. Additionally, the bill introduces a definition for "freshwater," specifying it as water containing less than 1,000 milligrams per liter of total dissolved solids.

The bill clarifies that the amendments made 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 prior to this date will remain enforceable under the previous law. Overall, the bill aims to support the hydraulic fracturing industry by reducing tax burdens associated with water-related processes.

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