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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.

Inactive

Wyoming marks this bill as inactive, which usually means it is no longer moving in the current session.

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

Plain English Breakdown

The bill's status as inactive means it will likely not become law, but there are no further details about future legislative actions.

Taxing Hydrogen Production

The bill proposes to tax hydrogen production in Wyoming at different rates depending on the source of hydrogen.

What This Bill Does

  • Creates a severance tax on hydrogen produced from water at a rate of nine percent (9%).
  • Imposes a three percent (3%) severance tax on hydrogen made from by-product water or any other feedstock or source.
  • 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 will be taxed according to the bill's provisions.

Terms To Know

Feedstock
The raw material used to produce hydrogen, such as water or natural gas.
Hydrogen production
The process of separating or extracting hydrogen from a feedstock.

Limits and Unknowns

  • It is unclear if this bill will become law since it died in committee and was returned to the House on March 3, 2026.
  • The bill does not specify how the tax revenue will be used.

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
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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
‑
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