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OklahomaHB 1372Oklahoma 2026 Regular SessionHouse

Revenue and taxation; gross production tax; limited exemption for production from certain wells; surety; effective date; emergency.

Sponsored By: Brad Boles (Republican)

Signed by Governor

Senate Committee

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Lower tax for pre-spudded wells

The standard gross production tax on oil and gas is 7%. Wells spudded before the law’s effective date pay 5% for their first 36 months of production, then 7%. If voters approve State Question No. 795, the first 36 months drop to 2%, then return to 7%.

Orphaned-well projects get lower tax and bond

If you run a recovery project on an OCC‑listed orphaned well, your gross production tax rate is cut by 50% for 36 months from the project start. Before any production, you must post $25,000 per well as a surety bond, bank letter of credit, cash, or certificate of deposit with the Secretary of State. The security covers the first 36 months and can be used for plugging if the well is abandoned.

Tax-free periods and refunds for wells

Production from enhanced recovery projects that start or are approved on or after July 1, 2022 is exempt from tax for up to 5 years, starting on the injection start date or until recovery ends. Production from wells drilled but not completed by July 1, 2021 and later completed with recycled water on or after July 1, 2022 is tax‑exempt for 24 months from first sales, prorated by the recycled‑water share. You can claim only one exemption per well at a time, but you may switch to enhanced recovery after a recycled‑water break ends. Operators (or their designees) get refunds of the exempted tax after the fiscal year ends, with Corporation Commission qualification and an 18‑month filing window. Refunds are capped each year at $15 million (enhanced recovery) and $10 million (recycled water), with no more than 20% to any one entity; claims are prorated if caps are exceeded.

When these tax changes take effect

Most of this act takes effect on July 1, 2025. The act also declares an emergency, so it is in force upon passage and approval to speed implementation.

Sponsors & Cosponsors

Sponsor

  • Brad Boles

    Republican • House

Cosponsors

  • Grant Green

    Republican • Senate

  • Waldron

    Affiliation unavailable

Roll Call Votes

All Roll Calls

Yes: 180 • No: 2

Senate vote • 4/30/2025

THIRD READING

Yes: 43 • No: 1

Senate vote • 4/17/2025

Committee vote: Energy

Yes: 11 • No: 0

House vote • 3/11/2025

THIRD READING

Yes: 90 • No: 0

House vote • 2/26/2025

DO PASS

Yes: 28 • No: 1

House vote • 2/6/2025

DO PASS

Yes: 8 • No: 0

Actions Timeline

  1. Approved by Governor 05/06/2025

    5/7/2025House

  2. Sent to Governor

    5/1/2025House

  3. Enrolled measure signed, returned to House

    5/1/2025Senate

  4. Enrolled, signed, to Senate

    5/1/2025House

  5. Referred for enrollment

    4/30/2025House

  6. Engrossed measure signed, returned to House

    4/30/2025Senate

  7. Measure and Emergency passed: Ayes: 43 Nays: 1

    4/30/2025Senate

  8. General Order, Considered

    4/30/2025Senate

  9. Placed on General Order

    4/24/2025Senate

  10. Withdrawn from Appropriations committee

    4/24/2025Senate

  11. Referred to Appropriations

    4/17/2025Senate

  12. Reported Do Pass Energy committee; CR filed

    4/17/2025Senate

  13. Second Reading referred to Energy Committee then to Appropriations Committee

    4/1/2025Senate

  14. Coauthored by Representative Waldron

    3/13/2025Senate

  15. First Reading

    3/12/2025Senate

  16. Engrossed, signed, to Senate

    3/12/2025House

  17. Referred for engrossment

    3/11/2025House

  18. Third Reading, Measure and Emergency passed: Ayes: 90 Nays: 0

    3/11/2025House

  19. General Order

    3/11/2025House

  20. Authored by Senator Green (principal Senate author)

    3/3/2025House

  21. CR; Do Pass, amended by committee substitute Appropriations and Budget Committee

    3/3/2025House

  22. Recommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee

    2/6/2025House

  23. Referred to Appropriations and Budget Finance Subcommittee

    2/4/2025House

  24. Second Reading referred to Appropriations and Budget

    2/4/2025House

  25. Authored by Representative Boles

    2/3/2025House

Bill Text

  • Enrolled (final version)

    5/1/2025

    PDF

  • Floor (Senate)

    4/24/2025

    PDF

  • Senate Committee Report

    4/17/2025

    PDF

  • Engrossed

    3/12/2025

    PDF

  • Floor (House)

    3/3/2025

    PDF

  • House Committee Report

    3/3/2025

    PDF

  • House Committee Substitute

    3/3/2025

    PDF

  • House Committee Report

    2/6/2025

    PDF

  • Introduced

    1/15/2025

    PDF

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