HB879 • 2026

ENERGY: Requires carbon dioxide storage facility operators pay twenty-five percent of their gross tax credit amount to the landowners of the area of operations

Energy Land Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Robert Carter
Last action: 2026-03-09
Official status: Pending House Natural Resources - Considered 5/19/26
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details about the allocation of payments or the exact language of the new law being added.

Energy Law for Carbon Storage

This bill requires companies that store carbon dioxide underground to give a portion of their tax savings to the landowners whose property is used for storage.

What This Bill Does

Requires carbon dioxide storage facility operators to pay at least one quarter of their gross tax credit amount earned from storing carbon dioxide to the landowners in the area where the storage happens.

Who It Names or Affects

Carbon dioxide storage facility operators
Landowners in areas where carbon dioxide is stored underground

Terms To Know

Tax credit: A reduction in the amount of tax a company has to pay based on certain activities, like storing carbon dioxide.
Sequestration: The process of capturing and storing carbon dioxide underground to prevent it from entering the atmosphere.

Limits and Unknowns

Does not specify what happens if a landowner does not receive their share.
Does not provide details on how disputes between operators and landowners will be resolved.
The bill has passed both chambers of the Louisiana Legislature but its final status is pending.

Bill History

2026-03-09 H
Read by title, under the rules, referred to the Committee on Natural Resources and Environment.
2026-02-27 H
First appeared in the Interim Calendar on 2/27/2026.
2026-02-27 H
Under the rules, provisionally referred to the Committee on Natural Resources and Environment.
2026-02-27 H
Prefiled.

Official Summary Text

ENERGY: Requires carbon dioxide storage facility operators pay twenty-five percent of their gross tax credit amount to the landowners of the area of operations

Current Bill Text

Read the full stored bill text

HLS 26RS-685 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 879
BY REPRESENTATIVE ROBBY CARTER
ENERGY: Requires carbon dioxide storage facility operators pay twenty-five percent of
their gross tax credit amount to the landowners of the area of operations
1 AN ACT
2 To enact R.S. 30:1116, relative to compensation of landowners in the area of operation of
3 a storage facility; to require carbon dioxide facility operators compensate owners in
4 interest in a carbon dioxide storage facility a percentage of the sequestration tax
5 credit earned; to require the payments be allocated according to the proportionate
6 share of the total surface acreage contributed to the storage facility; and to provide
7 for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 30:1116 is hereby enacted to read as follows:
10 §1116. Payments to landowners
11 At least one quarter of the gross credits earned by storage operators pursuant
12 to 26 U.S.C. 45Q for the sequestration of carbon dioxide shall be paid to the owners
13 in interest in the storage facility. The payments shall be allocated according to the
14 proportionate share of the total surface acreage contributed to the storage facility.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-685 ORIGINAL
HB NO. 879
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 879 Original 2026 Regular Session Robby Carter
Abstract: Requires storage facility operators compensate owners in interest in a carbon
dioxide storage facility a percentage of the sequestration tax credit earned.
Proposed law requires at least 1/4 of the gross credits earned by storage operators pursuant
to federal law (26 U.S.C. 45Q) for the sequestration of carbon dioxide be paid to the owners
in interest in the storage facility according to their proportionate share of acreage contributed
to the facility.
(Adds R.S. 30:1116)
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.