Proposal would tax Wyoming hydrogen production at different rates

The proposal would tax hydrogen produced in Wyoming based on its source. The tax would cover hydrogen separated or extracted from feedstock in Wyoming, including water, biomass, natural gas, and other fossil fuels. The tax would be in addition to other taxes. A producer or a person who owns part of the hydrogen would be liable, but the same product could not be taxed more than once under this section. Hydrogen made from water would have a 9% rate, except hydrogen made from by-product water. Hydrogen made from by-product water or another source would have a 3% rate. Exemptions for natural gas would also apply to hydrogen. Existing severance tax rules would govern how hydrogen is valued, how the tax is collected and enforced, taxpayer remedies, and how revenue is distributed. The proposal would apply to hydrogen production on or after July 1, 2026, and sets that date as its effective date.