Relating to an exemption from sales and use taxes for certain tangible personal property used in hydraulic fracturing.

HB 4382 would exempt from Texas sales and use taxes tangible personal property used to process, reuse, or recycle non-freshwater (water with over 1,000 mg/L dissolved solids) specifically for hydraulic fracturing operations at oil or gas wells. This tax exemption directly affects oil and gas companies conducting hydraulic fracturing, as it reduces their costs for qualifying water-processing equipment. The bill amends the Tax Code to add this exemption under water-related tax exemptions, specifically targeting equipment used in fracturing operations. The change would take effect September 1, 2025, if enacted.