This bill amends existing Wyoming law regarding severance taxes on crude oil and natural gas by introducing an exemption for production derived from enhanced oil recovery techniques that utilize Wyoming-sourced carbon dioxide. Specifically, it creates a new subsection (q) in W.S. 39-14-205, which stipulates that crude oil and natural gas produced through these enhanced recovery 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). The bill outlines specific conditions for this exemption, including the requirement for taxpayers to apply for the exemption and the necessity for the carbon dioxide used in the recovery process to originate from within Wyoming.

Additionally, the bill provides definitions for key terms such as "carbon capture, utilization and storage technology" and "enhanced oil and gas recovery." It mandates that the Wyoming Department of Revenue report annually to relevant legislative committees on the use of this exemption and its revenue impacts. The act is set to take effect on July 1, 2025.

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