House Bill 431 Alabama 2026 Session

Summary

Primary Sponsor

Matthew HammettRepresentative

Republican

Session

2026 Regular Session

Title

Revenue; underground carbon dioxide storage tax levied

Summary

HB431 would impose a new 20% tax on carbon dioxide storage wells based on the value of CO2 stored, with revenue split evenly between the state General Fund and local governments, effective October 1, 2026.

What This Bill Does

It creates a tax on carbon dioxide storage wells equal to 20% of the gross value of CO2 injected or stored, with monthly remittance to the Department of Revenue. The gross value is defined as the sale price or market value at the time of storage. Fifty percent of the net taxes collected go to the State General Fund, and the remaining fifty percent are distributed to the county where the CO2 was stored; if stored within a municipality, half of that local share goes to the municipality. The Department may adopt rules to administer the tax. It becomes effective October 1, 2026.

Who It Affects

• Operators of carbon dioxide storage wells would owe the new tax and remit payments monthly.
• State and local governments (counties and municipalities where CO2 is stored) would receive tax revenue to fund programs or services.

Key Provisions

• Defines gross value as the sale price or market value of CO2 at the time of injection/storage.
• Imposes a 20% tax on CO2 storage wells based on gross value and remits taxes monthly to the Department of Revenue.
• Distributes net tax revenue with 50% to the State General Fund and 50% allocated to the county where CO2 was stored; if in a municipality, 50% of the local portion goes to the municipality.
• Allows the Department to adopt administrative rules to implement the section.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue