Revenue and taxation; gross production tax; limited exemption for production from certain wells; surety; effective date; emergency.
HB 1372 temporarily lowers the gross production tax rate for oil and gas from existing wells (spudded before the law's effective date) to 5% for 36 months, instead of the standard 7%. It also creates two new tax exemptions: 1) 5 years of tax-free production for secondary/tertiary recovery projects approved after July 2022, and 2) a 24-month tax exemption for wells using recycled water (proportional to recycled water usage). For orphaned wells, producers must post a $25,000 surety bond per well to qualify for a 50% tax reduction for 36 months. The bill sets annual refund limits of $15 million for recovery projects and $10 million for recycled water exemptions, requiring producers to apply for refunds through the Tax Commission.
Bill status
signed
all 5 stages cleared
Introduction
Feb 2025
Committee Review
Apr 2025
House Passage
Mar 2025
Senate Passage
Apr 2025
Signed into Law
May 2025
Introduced Feb 3, 2025
Signed May 7, 2025
Maddy AI version diff · 6 comparisons
What changed between versions
Floor (House)
→
Floor (Senate)
·
3 edits
MINOR
The bill was amended to transition from a House version to a Senate version, updating the header information and reorganizing the text structure. The core tax provisions remain substantially the same, though the Senate version adds specific formatting notes about committee amendments. The substantive policy content regarding tax rates, exemptions for secondary recovery projects, orphaned well incentives, and recycled water usage appears unchanged in its operational effect.
Scope change
The bill's scope remains focused on gross production tax on oil and gas in Oklahoma, with no substantive changes to applicability or coverage.
TECHNICAL
Header changed from 'HOUSE OF REPRESENTATIVES' to 'SENATE FLOOR VERSION' with updated date and bill designation.
Text structure reorganized with different line numbering and spacing, adding notes about bold face denoting committee amendments.
SUBSTANTIVE
Core tax provisions, exemption criteria, and operational requirements remain substantively identical to the House version.
Floor votes · Senate Apr 30, 2025 · House Mar 11, 2025
How they voted
45–1
Passed · 3 other
Total votes 49
Apr 30, 2025
D
Democratic9
77% Yea
R
Republican40
95% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
26
Key actions
8
Committee
7
May 7, 2025
Signed into law
Approved by Governor 05/06/2025
lower
Apr 30, 2025
Committee
Referred for enrollment
lower
Apr 30, 2025
Upper · Passed
Engrossed measure signed, returned to House
upper
Apr 30, 2025
Upper · Passed
Measure and Emergency passed: Ayes: 43 Nays: 1
upper
Apr 17, 2025
Committee
Referred to Appropriations
upper
Apr 17, 2025
Upper · Passed
Reported Do Pass Energy committee; CR filed
upper
Mar 12, 2025
Introduced
First Reading
upper
Mar 12, 2025
Lower · Passed
Engrossed, signed, to Senate
lower
Mar 11, 2025
Committee
Referred for engrossment
lower
Mar 11, 2025
Lower · Passed
Third Reading, Measure and Emergency passed: Ayes: 90 Nays: 0
lower
Mar 3, 2025
Lower · Passed
CR; Do Pass, amended by committee substitute Appropriations and Budget Committee
lower
Feb 6, 2025
Lower · Passed
Recommendation to the full committee; Do Pass Appropriations and Budget Finance Subcommittee
lower
Feb 4, 2025
Committee
Referred to Appropriations and Budget Finance Subcommittee
lower
Feb 3, 2025
Introduced
First Reading
lower
2 primary · 0 co-sponsors
Sponsors
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