HB 495 Louisiana House · 2025 Regular Session

TAX/SEVERANCE TAX: Limits the severance tax exemption for gas produced from certain horizontally drilled wells (EN +$8,600,000 GF RV See Note)

HB 495 limits a tax exemption for gas produced from certain horizontally drilled wells, directly affecting natural gas producers who currently benefit from this exemption. The bill removes the exemption for gas from wells drilled horizontally, meaning producers would pay severance taxes on that production. This change is contingent on House Bill 600 becoming law, as specified in the bill text. The fiscal note indicates this policy shift would generate approximately $8.6 million in additional state revenue. The bill passed committee and is now moving toward final passage.

Bill status signed all 5 stages cleared

Introduction

Apr 2025

Committee Review

Jun 2025

House Passage

Jun 2025

Senate Passage

Jun 2025

Signed into Law

Jun 2025

Introduced Apr 4, 2025 Signed Jun 11, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

HB495 Original → HB495 Act 284 · 3 edits

MINOR

This bill amends the severance tax exemption for gas produced from horizontally drilled wells in Louisiana. It extends the duration of the tax exemption for gas from six months to eighteen months (or until well cost is paid off), while maintaining the twenty-four-month exemption for oil. The changes also update the effective date and add a contingency clause linking this bill's operation to another related bill.

Scope change

The bill's scope remains focused on severance tax exemptions for horizontal wells, but the applicability period for gas exemptions has been significantly lengthened.

ELIGIBILITY

Extended the severance tax exemption for gas produced from horizontal wells from six months to eighteen months, or until the well's cost is paid off, whichever comes first.

TIMELINE

Updated the effective date and operational conditions of the act to align with the 2025 Regular Session and link its effectiveness to the passage of House Bill No. 600.

TECHNICAL

Adjusted the text of the statute to clarify that the oil exemption extends for twenty-four months or until payout, whereas the gas exemption now extends for eighteen months or until payout.

Floor votes · Senate Jun 8, 2025 · House May 8, 2025

How they voted

36–0

Passed · 1 other

Total votes 37

Jun 8, 2025

D Democratic11

10 Yea 1

90% Yea

R Republican26

26 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Jun 9, 2025

Lower · Passed

Read by title, roll called, yeas 101, nays 0, Senate amendments concurred in.

lower

Jun 8, 2025

Upper · Passed

Rules suspended. The amended bill was read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

upper

Jun 4, 2025

Upper · Passed

Reported with amendments. Rules suspended. Committee amendments read and adopted. Read by title and referred to the Legislative Bureau.

upper

Jun 3, 2025

Committee

Read by title. Recommitted to the Committee on Finance.

upper

Jun 2, 2025

Upper · Passed

Reported favorably.

upper

May 8, 2025

Lower · Passed

Read third time by title, roll called on final passage, yeas 97, nays 2. Finally passed, title adopted, ordered to the Senate.

lower

May 5, 2025

Lower · Passed

Reported with amendments (13-0).

lower

Apr 14, 2025

Committee

Read by title, under the rules, referred to the Committee on Ways and Means.

lower

Apr 4, 2025

Committee

Under the rules, provisionally referred to the Committee on Ways and Means.

lower

1 primary · 0 co-sponsors