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

SB 1211 creates a sales and use tax exemption for oil and gas companies in Texas that purchase equipment to process, reuse, or recycle water (excluding freshwater) specifically for hydraulic fracturing ("fracking") operations at oil or gas wells. The bill amends Texas Tax Code Section 151.355 to add this exemption as a new category, applying to tangible personal property directly used in water processing for fracturing. It defines "freshwater" as water with less than 1,000 milligrams per liter of dissolved solids, excluding such water from the exemption. The tax exemption would take effect September 1, 2025, and does not affect taxes due before that date. This policy change directly benefits oil and gas operators engaged in hydraulic fracturing by reducing their equipment costs.