All Roll Calls
Yes: 223 • No: 10
UtahS.B. 2342025 General SessionSenateWALLET
Severance Amendments
Sponsored By: Derrin R. Owens (Republican)
Signed by Governor
Natural ResourcesDepartment of Natural ResourcesMiningSeverance TaxState Tax CommissionRevenue and TaxationTax CreditsOffice of Energy Development
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 0 costs, 4 mixed.
Infrastructure developers gain certified tax credit options
Beginning January 1, 2025, qualifying infrastructure developers must receive an Office of Energy Development certificate before claiming the credit. The certified, nonrefundable credit can reduce oil, gas, or mining severance taxes instead of income taxes, but the same certificate cannot cover both. Unused credit carries forward up to seven tax years. Credit periods end at the earliest of the project's economic life, 20 years, or recovery of 50% of infrastructure construction costs through credits—30% for fuel-standard compliance projects. Total credits cannot exceed 30% of the project's total infrastructure-related tax revenue, and annual credits cannot exceed that year's revenue.
Mining credits expand with new approval rules
Starting with tax years beginning January 1, 2027, mining claimants get nonrefundable credits limited to verified, unused exploration costs or mining taxes caused by that exploration, whichever is less. Claimants generally need state agreements before starting Utah exploration, with special timing rules for 2025–2026 activities. Certified costs for one mine are capped at $20 million, or $30 million when excess costs support minerals for which U.S. net import reliance exceeds 50%. The former 30% annual credit limit is removed; certificates last up to 20 years, and unused credits carry forward up to 15 tax years. Credits can be assigned with written notice naming the recipient and an irrevocable decision not to claim them; the credit provision ends July 1, 2037.
Infrastructure developers get earlier credit access
Qualifying infrastructure developers can claim an additional credit for tax years beginning in 2024, alongside the credit available for 2025. The additional credit cannot exceed the project's infrastructure-related tax revenue for that 2024 tax year. Applicants must pay for CPA-verified reports. For tax years beginning in 2025, the Office of Energy Development can treat projects as new despite missing the usual start-time rule. Applicants must use the required infrastructure-credit application process.
Hydrogen producers get credits with verification
The law repeals the former hydrogen-production credit beginning January 1, 2025, and replaces it with a verified credit. Taxpayers must own or operate a Utah plant that converts natural gas into hydrogen fuel for zero-emission motor vehicles. All natural gas on which the taxpayer owes severance tax must be used in Utah for that purpose. The state must verify the plant and its gas use. The nonrefundable credit equals the lesser of severance tax owed or $5 million.
Well repair credits require verified costs
The law repeals the former oil and gas well-work credit beginning January 1, 2025, and replaces it with a certified credit. The replacement covers state-approved well recompletions or workovers, which are work on existing wells. The nonrefundable credit is capped at the lesser of 20% of qualifying payments or $30,000 per taxpayer, per well, per calendar year. Unused credit carries forward up to three calendar years. Claimants must submit an expense summary and independent CPA report, obtain state verification, and receive a tax-credit certificate.
Sponsors & Cosponsors
Sponsor
Derrin R. Owens
Republican • Senate
Cosponsors
Carl R. Albrecht
Republican • House
Roll Call Votes
House vote • 3/7/2025
House/ substituted
Yes: 0 • No: 0
House vote • 3/7/2025
House/ passed 3rd reading
Yes: 65 • No: 0
Senate vote • 3/7/2025
Senate/ concurs with House amendment
Yes: 19 • No: 5
House vote • 3/7/2025
House/ passed 3rd reading
Yes: 68 • No: 0
House vote • 3/7/2025
House/ motion to reconsider
Yes: 0 • No: 0
House vote • 2/27/2025
House Comm - Substitute Recommendation
Yes: 10 • No: 0
House vote • 2/27/2025
House Comm - Favorable Recommendation
Yes: 10 • No: 0
Senate vote • 2/24/2025
Senate/ passed 3rd reading
Yes: 25 • No: 3
Senate vote • 2/24/2025
Senate/ circled
Yes: 0 • No: 0
Senate vote • 2/24/2025
Senate/ uncircled
Yes: 0 • No: 0
Senate vote • 2/21/2025
Senate/ passed 2nd reading
Yes: 22 • No: 2
Senate vote • 2/14/2025
Senate Comm - Favorable Recommendation
Yes: 4 • No: 0
Senate vote • Unknown
Senate/ circled
Yes: 0 • No: 0
House vote • Unknown
House/ motion to reconsider
Yes: 0 • No: 0
House vote • Unknown
House/ substituted
Yes: 0 • No: 0
Senate vote • Unknown
Senate/ uncircled
Yes: 0 • No: 0
Actions Timeline
Governor Signed
3/24/2025Senate/ to Governor
3/17/2025SenateSenate/ received enrolled bill from Printing
3/17/2025SenateSenate/ enrolled bill to Printing
3/14/2025SenateEnrolled Bill Returned to House or Senate
3/14/2025Draft of Enrolled Bill Prepared
3/11/2025Bill Received from Senate for Enrolling
3/11/2025Senate/ signed by President/ sent for enrolling
3/8/2025SenateSenate/ received from House
3/8/2025SenateHouse/ to Senate
3/7/2025HouseHouse/ signed by Speaker/ returned to Senate
3/7/2025HouseHouse/ received from Senate
3/7/2025HouseSenate/ to House
3/7/2025SenateSenate/ concurs with House amendment
3/7/2025SenateSenate/ placed on Concurrence Calendar
3/7/2025SenateSenate/ received from House
3/7/2025SenateHouse/ to Senate
3/7/2025HouseHouse/ passed 3rd reading
3/7/2025HouseHouse/ substituted
3/7/2025HouseHouse/ motion to reconsider
3/7/2025HouseHouse/ to Senate
3/7/2025HouseHouse/ passed 3rd reading
3/7/2025HouseHouse/ 3rd reading
3/7/2025HouseHouse/ 2nd reading
3/7/2025HouseHouse/ Rules to 3rd Reading Calendar
3/7/2025House
Bill Text
Enrolled
3/14/2025
Substitute #3
3/4/2025
Substitute #2
2/27/2025
Substitute #1
2/24/2025
Introduced
2/5/2025