The bill establishes a new taxation framework for hydrogen production in Wyoming, creating a specific section (W.S. 39-14-213) that outlines the definitions, administration, and tax rates applicable to hydrogen production. It defines key terms such as "feedstock" and "hydrogen production," and mandates that the Department of Revenue assess hydrogen production at fair market value for taxation purposes. A severance tax is levied on the gross product of hydrogen, with rates set at nine percent for hydrogen produced from water and three percent for hydrogen produced from other sources. The bill also incorporates existing provisions related to natural gas taxation, compliance, enforcement, and taxpayer remedies.

The act specifies that it will apply to all hydrogen production occurring on or after July 1, 2026, and will take effect on the same date. This legislation aims to regulate and tax hydrogen production in a manner similar to existing natural gas tax laws, while also providing exemptions and ensuring that the tax is not levied more than once on the same gross product.