Summary:

 House Bill 45 (HB 45) introduces the Renewable Energy Production Tax Act, imposing an excise tax on electricity generated from renewable energy resources at a rate of 3.75% of taxable value. The revenue is directed to the Severance Tax Permanent Fund. HB 45 applies to electricity produced beginning January 1, 2026​.
 

Legislation Overview:

 House Bill 45 (HB 45) establishes the Renewable Energy Production Tax at 3.75% of the taxable value of electricity generated from renewable sources, including solar, wind, hydropower, geothermal, and biomass. The taxable value is based on the wholesale price of electricity, as determined by the U.S. Energy Information Administration. Exemptions include electricity produced for personal consumption, government entities, Indian nations, tribes, and pueblos. Revenue generated will be distributed to the Severance Tax Permanent Fund (fund).

The bill repeals current law, which addressed general energy taxation but lacked specificity for renewable energy production. These repealed sections only cease to apply once contingencies are met, ensuring a smooth transition to the new taxation structure under HB 45. This includes ensuring the Renewable Energy Production Tax Act is fully operational and its revenue mechanisms are active.

Fiscal impacts include increased revenue for the fund from renewable energy production, ensuring a dedicated source of funding while aligning with state and federal energy pricing benchmarks. The act applies to electricity generated beginning January 1, 2026, with monthly payment requirements.
 

Current Law:

 No tax currently applies exclusively to electricity generated from renewable energy resources. Revenue from renewable energy production is not specifically allocated to the Severance Tax Permanent Fund. Additionally, the repealed sections of Chapter 41 of Laws 2024 governed certain aspects of electricity taxation that are now revised and superseded by HB 45.