The bill, H.B. No. 4382, 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 provision that expands the list of water-related exemptions to include tangible personal property 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 changes made by this Act will not affect any tax liabilities that accrued before its effective date of September 1, 2025. Those liabilities will remain enforceable under the previous law, ensuring continuity in tax collection and enforcement.

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