Louisiana Severance Tax Law Changes – A Win for Oil & Gas

While several bills were considered that would restructure the state’s severance tax scheme on oil and gas during Louisiana’s 2025 regular legislative session, three bills aimed to stimulate drilling activity and attract jobs in the energy sector were passed and sent to Governor Jeff Landry for his signature.  

In an effort to make Louisiana more competitive, HB 600 by Representative Geymann lowers the severance tax rate from 12.5%, the nation’s highest, to 6.5% on oil produced from wells completed after June 30, 2025. In addition, this bill changes the special rate on oil produced from incapable wells from one-half of the regular rate provided for in present law to 6.25%.  The reduced rate of tax applies to a multiple-well lease only if all wells on the lease or property are certified as incapable.

Read the full post from Liskow attorneys  Bob Angelico,  Leon Rittenberg III, Caroline Lafourcade, John Rouchell, Jamie Rhymes and Kevin Naccari, Jr. on The Gulf Coast Business Law Blog here.