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 495 Original 2025 Regular Session Geymann
Abstract: Reduces the duration of a severance tax exemption for gas produced from horizontally
drilled wells.
Present law provides for the levy of a severance tax on natural resources severed from the soil or
water. Provides that the rate of severance tax is predicated on the quantity or value of the products
or resources severed. Establishes severance tax rates on resources subject to the tax.
Present law establishes an exemption, known commonly as the "horizontal well exemption", for oil
and gas produced from horizontally drilled wells or horizontally drilled recompletion wells as
defined in present law.
Present law provides that the horizontal well exemption for oil and gas shall last for a period of 24
months or until payout of the well cost is achieved, whichever comes first.
Proposed law retains the horizontal well exemption for oil as provided in present law but limits the
duration for which the exemption applies to gas. Provides that the horizontal well exemption for gas
shall last for a period of six months or until payout of the well cost is achieved, whichever comes
first.
Proposed law otherwise retains present law.
Proposed law applies to taxable periods beginning on or after July 1, 2025.
Effective July 1, 2025.
(Amends R.S. 47:633(7)(d)(intro. para.))