HB4382 - Relating to an exemption from sales and use taxes for certain tangible personal property used in hydraulic fracturing.

  89R9680 JBD-F     By: Darby H.B. No. 4382       A BILL TO BE ENTITLED   AN ACT   relating to an exemption from sales and use taxes for certain   tangible personal property used in hydraulic fracturing.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 151.355, Tax Code, is amended to read as   follows:          Sec. 151.355.  WATER-RELATED EXEMPTIONS.   (a)   The following   are exempted from taxes imposed by this chapter:                (1)  rainwater harvesting equipment or supplies, water   recycling and reuse equipment or supplies, or other equipment,   services, or supplies used solely to reduce or eliminate water use;                (2)  equipment, services, or supplies used solely for   desalination of surface water or groundwater;                (3)  equipment, services, or supplies used solely for   brush control designed to enhance the availability of water;                (4)  equipment, services, or supplies used solely for   precipitation enhancement;                (5)  equipment, services, or supplies used solely to   construct or operate a water or wastewater system certified by the   Texas Commission on Environmental Quality as a regional system;                (6)  equipment, services, or supplies used solely to   construct or operate a water supply or wastewater system by a   private entity as a public-private partnership as certified by the   political subdivision that is a party to the project; and                (7)  tangible personal property specifically used to   process, reuse, or recycle water, other than freshwater,   [ wastewater ] that will be used in fracturing work performed at an   oil or gas well.           (b)     For the purposes of this section, "freshwater"   means   water containing less than 1,000 milligrams per liter of total   dissolved solids.          SECTION 2.  Section 151.355, Tax Code, as amended by this   Act, does not affect tax liability accruing before the effective   date of this Act. That liability continues in effect as if this Act   had not been enacted, and the former law is continued in effect for   the collection of taxes due and for civil and criminal enforcement   of the liability for those taxes.          SECTION 3.  This Act takes effect September 1, 2025.