This bill modifies provisions relating to severance of oil, gas, and minerals.
This bill:
- repeals and reenacts the severance tax credit for mining exploration to create an agreement and post-performance certificate process;
- schedules the repeal of the severance tax credit for mining exploration but requires legislative review before the repeal;
- authorizes a taxpayer to claim the high cost infrastructure tax credit against severance tax liability instead of income tax liability;
- allows a taxpayer to claim the high cost infrastructure credit against severance tax liability during the 2025 taxable year for costs incurred during the 2024 taxable year;
- creates a new severance tax credit part and moves existing tax credits to the new part;
- addresses federal agency consultation before certain acts related to federal designations and minerals; and
- makes technical and conforming changes.

Statutes affected:
Introduced: 40-6-16, 40-6-24, 59-5-101, 59-5-102, 59-7-619, 59-10-1034, 79-6-401, 79-6-602, 79-6-603, 79-6-604
Substitute #1: 40-6-16, 40-6-24, 59-5-101, 59-5-102, 59-7-619, 59-10-1034, 79-6-401, 79-6-602, 79-6-603, 79-6-604
Substitute #2: 40-6-16, 40-6-24, 59-5-101, 59-5-102, 59-7-619, 59-10-1034, 63I-1-240, 63I-1-259, 79-6-401, 79-6-602, 79-6-603, 79-6-604
Enrolled: 40-6-16, 40-6-24, 59-5-101, 59-5-102, 59-7-619, 59-10-1034, 63I-1-240, 63I-1-259, 79-6-401, 79-6-602, 79-6-603, 79-6-604
Substitute #3: 40-6-16, 40-6-24, 59-5-101, 59-5-102, 59-7-619, 59-10-1034, 63I-1-240, 63I-1-259, 79-6-401, 79-6-602, 79-6-603, 79-6-604