The bill introduces an exemption from severance taxes for crude oil and natural gas produced through enhanced oil recovery techniques that utilize Wyoming-sourced carbon dioxide. Specifically, it amends existing tax regulations to allow for a reduction of one-half of the severance taxes imposed on crude oil and natural gas produced under these conditions. The bill outlines specific criteria for qualifying for this exemption, including the requirement that the production must employ carbon capture, utilization, and storage technology, and that the carbon dioxide used must originate from within Wyoming.

Additionally, the bill mandates that taxpayers seeking the exemption must complete an application process as prescribed by the relevant department. It also requires the department to report annually on the use of the exemption and its revenue impacts to designated legislative committees. The effective date for this act is set for July 1, 2025.

Statutes affected:
Introduced: 39-14-204, 39-14-205