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HB0161

Hydrogen Severance Tax

Last scannedOct 25, 2026, 2:19 AM

In one sentence

The bill proposes a new severance tax on hydrogen production in Wyoming and sets different rates based on the source of water used to produce hydrogen.

What it does

  • Creates a severance tax for companies that engage in hydrogen production from underground water sources.
  • Sets a tax rate of 3% for hydrogen produced using by-product water and 6% for all other types of hydrogen production.
  • Requires the state department to assess and value hydrogen production annually based on fair market value.
  • Applies existing natural gas tax exemptions to hydrogen under this new law.

Who it affects

  • Companies that produce hydrogen from underground water sources in Wyoming.

Limits and unknowns

  • The bill did not pass in its current session and is marked as inactive.
  • It only applies to hydrogen production starting on or after July 1, 2025.

Plain language

Terms to know

Severance Tax
A tax on the extraction or production of natural resources, like oil and gas, before they leave the ground.
By-Product Water
Water that is a secondary product from another process, such as mining operations.

Official record

Sources

Source checked

Official activity

Bill history

  1. H:Died in Committee Returned Bill Pursuant to HR 5-4House
  2. H No report prior to CoW CutoffHouse
  3. H Introduced and Referred to H09 - MineralsHouse
  4. H Received for IntroductionHouse
  5. Bill Number AssignedLSO