WY HB0121

Creates a new severance tax on hydrogen production in Wyoming, with the tax levied on the gross product value of hydrogen extracted or separated from feedstocks including water, biomass, natural gas, and other fossil fuels

Sets a 9% severance tax rate for hydrogen produced from water (electrolysis), with a lower 3% rate for hydrogen produced from by-product water or any non-water feedstock such as natural gas

Requires the Department of Revenue to annually value and assess hydrogen production at fair market value, using the same valuation method as natural gas

Applies existing natural gas severance tax exemptions, compliance procedures, enforcement mechanisms, and taxpayer remedies to hydrogen production

Effective July 1, 2026, applying to all hydrogen production occurring on or after that date