The bill introduces an exemption from severance taxes for crude oil and natural gas produced through enhanced oil recovery techniques that utilize carbon dioxide sourced from within Wyoming. Specifically, it amends existing tax rates and exemptions under W.S. 39-14-204 and W.S. 39-14-205, creating a new subsection (q) that allows for a reduction of one-half of the severance taxes imposed on such production. The bill outlines specific conditions that must be met to qualify for this exemption, including the requirement for the use of carbon capture, utilization, and storage technology.

Additionally, the bill mandates that taxpayers seeking the exemption must complete an application process and that the Wyoming Department of Revenue may consult with relevant commissions to ensure compliance with the exemption criteria. The department is also required to report annually on the use of the exemption and its revenue impacts to designated legislative committees. The act is set to take effect on July 1, 2025.

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