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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB0121 • 2026

Hydrogen severance taxation.

AN ACT relating to mine product taxes; providing for the taxation of hydrogen production as specified; specifying tax rates for different types of hydrogen production; providing for the administration of the tax; specifying applicability; and providing for an effective date.

Energy Land Taxes
Did Not Pass

The latest official action shows that this bill did not move forward in that session.

Sponsor
Representative Campbell, K
Last action
2026-03-03
Official status
inactive
Effective date
3/1/2026

Plain English Breakdown

The official source material does not provide specific details on annual assessment by the state department, only that it applies existing provisions.

Taxing Hydrogen Production

The bill proposes to create a severance tax on hydrogen production in Wyoming with different rates for various types of hydrogen production.

What This Bill Does

  • Creates a severance tax on the value of hydrogen produced from water at a rate of nine percent (9%).
  • Sets a three percent (3%) tax rate for hydrogen made from by-product water or any feedstock other than water.
  • Specifies that existing exemptions for natural gas also apply to hydrogen under this new law.

Who It Names or Affects

  • Companies and individuals who produce hydrogen in Wyoming.

Terms To Know

Feedstock
Raw materials used to make hydrogen, such as water or natural gas.
Severance tax
A tax on the extraction of minerals and other resources from the ground.

Limits and Unknowns

  • The bill did not pass in its current session.
  • It is unclear how much revenue this new tax will generate for Wyoming.

Bill History

  1. 2026-03-03 House

    H:Died in Committee Returned Bill Pursuant to HR 5-4

  2. 2026-02-20 House

    H No report prior to CoW Cutoff

  3. 2026-02-10 House

    H Introduced and Referred to H09 - Minerals 53-8-1-0-0

  4. 2026-02-09 House

    H Received for Introduction

  5. 2026-02-07 LSO

    Bill Number Assigned

Current Bill Text

Read the full stored bill text 
26LSO-0034
2026
STATE OF WYOMING
26LSO-0034
Numbered
2.0

HOUSE BILL NO. HB0121

Hydrogen severance taxation.

Sponsored by: Representative(s) Campbell, K

A BILL

for

AN ACT relating to mine product taxes; providing for the taxation of hydrogen production as specified; specifying tax rates for different types of hydrogen production; providing for the administration of the tax; specifying applicability; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 39
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14
‑
213 is created to read:

39
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14
‑
213.

Taxation of certain hydrogen production.

(a)

As used in this section:

(i)

"Feedstock" means the raw material used to produce hydrogen and includes without limitation water, biomass, natural gas and other fossil fuels;

(ii)

"Hydrogen" means hydrogen subject to taxation under this section;

(iii)

"Hydrogen production" means the separation or extraction of hydrogen from a feedstock;

(iv)

All other definitions in W.S. 39
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14
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201 are incorporated herein by reference to the extent that they may apply.

(b)

Administration, confidentiality: The department shall annually value and assess hydrogen production at its fair market value for taxation in accordance with the applicable provisions of W.S. 39
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14
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202.

(c)

Taxable event: There is levied a severance tax on the value of the gross product of hydrogen resulting from hydrogen production in this state. The tax imposed by this subsection shall be in addition to all other taxes imposed by law.

(d)

Basis of tax: Hydrogen shall be valued for taxation as natural gas as provided in W.S. 39
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14
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203(b).

(e)

Taxpayer: Any person engaging in hydrogen production or, to the extent of the person's ownership interest, any person owning an interest in the hydrogen, is liable for the payment of the severance tax together with any penalties and interest. Nothing in this subsection shall be deemed to require the tax to be paid more than one (1) time for the same gross product as provided in this section.

(f)

Tax rate: Hydrogen resulting from hydrogen production shall be subject to the following severance tax rates:

(i)

Except as provided in paragraph (ii) of this subsection, hydrogen produced from water shall be subject to a severance tax rate of nine percent (9%);

(ii)

Hydrogen produced from by
‑
product water as defined in W.S. 41
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3
‑
903 or hydrogen produced from any feedstock or source other than water shall be subject to a severance tax rate of three percent (3%).

(g)

Exemptions: The exemptions from taxation provided by W.S. 39
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14
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205 for natural gas shall apply to hydrogen under this section.

(h)

Compliance, collection procedures: The severance tax related provisions of W.S. 39
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14
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207 shall apply to hydrogen production.

(j)

Enforcement: All severance tax related provisions of W.S. 39
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14
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208 shall apply to hydrogen production.

(k)

Taxpayer remedies: All severance tax related provisions of W.S. 39
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14
‑
209 shall apply to hydrogen production.

(m)

Distribution: Severance tax revenues from hydrogen production shall be distributed as provided by W.S. 39
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14
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211.

Section 2
.

This act shall apply to all hydrogen production occurring on or after July 1, 2026.

Section 3
.

This act is effective July 1, 2026
.

(END)

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HB0121