The bill introduces an exemption from severance taxes for crude oil and natural gas produced through enhanced oil recovery techniques, specifically tertiary production. It amends existing tax regulations by adding a new subsection (q) to W.S. 39-14-205, which states that production resulting from tertiary methods will be exempt from one-half of the severance taxes imposed under W.S. 39-14-204(a)(iii) and from all severance taxes under W.S. 39-14-204(a)(iv). To qualify for this exemption, the production must utilize carbon capture, utilization, and storage technology that begins operations on or after January 1, 2025, and the technology must also qualify for a federal tax credit under 26 U.S.C. 45Q.

Additionally, the bill outlines several conditions for the exemption, including the requirement for consultation with relevant commissions to ensure compliance with the specified conditions. The exemption will remain available to taxpayers until they or the operators of the carbon capture technology are no longer eligible for the federal credit. Furthermore, the Department is mandated to report annually on the use of these exemptions and their revenue impacts to designated legislative committees. The act is set to take effect on January 1, 2025.

Statutes affected:
24LSO-0179 v0.4: 39-14-204