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Bill

HB 444

ENERGY: Creates an injection tax for carbon dioxide sequestration (OR SEE FISC NOTE SG RV)

2025 Regular Session Introduced by Shane Mack

Louisiana creates new tax on CO2 injection operations, generating state revenue while potentially affecting carbon capture and storage industry investment decisions.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 444

Legislative bill overview

HB 444 creates a new injection tax on carbon dioxide (CO2) sequestration activities in Louisiana. The bill authorizes taxation on CO2 injection operations, likely those involved in carbon capture and storage (CCS) or enhanced oil recovery using captured carbon. This represents Louisiana's attempt to generate revenue while potentially regulating or incentivizing carbon management practices.

Why is this important

Louisiana has significant oil and gas infrastructure and geological formations suitable for CO2 injection, making this policy economically relevant to the state. The tax could influence investment decisions in emerging carbon capture technology and storage projects, affecting both industry competitiveness and state revenue. It also signals Louisiana's positioning on climate-related economic policy during a period of national transition in energy markets.

Potential points of contention

  • Industry impact and competitiveness: Oil and gas operators argue new taxes reduce incentives for CCS investments and carbon utilization projects, potentially driving operations to other states with more favorable tax treatment
  • Carbon policy intent vs. revenue generation: Unclear whether the tax is designed to discourage injection (environmental/climate policy) or simply raise revenue, creating confusion about actual policy objectives
  • Geological and technical scope: The bill's definition of taxable injection activities may inadvertently capture enhanced oil recovery operations or other injection types, raising questions about fairness and unintended consequences

Compiled from official sources — confirm details with the bill’s official record.

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