HB 3746

Darby Bill Counts Hydrogen As Gas For A Sales Tax Break

Died in committee

Verdict: Smells

SmellsInitial review

Rep. Drew DarbyRHouse 72

Why it's charged

Carve-out

THE TEXT

“In this section, "gas" includes hydrogen.”

Bill text, introduced version (I)

The only operative change extends an existing tax exemption to a single named product, hydrogen. The caption speaks only of "certain gas and electricity" without naming it.

Carve-out

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to the exemption of certain gas and electricity from sales and use taxes.

Caption from analyzed text · version I.

Summary

Caption: “certain gas.” Bill: hydrogen. One sentence, and hydrogen buyers get the exemption.

The bill adds one sentence to the state sales tax law saying that, in the section that exempts certain gas and electricity from sales and use taxes, "gas" includes hydrogen. That means buyers of hydrogen get the same sales tax exemption that buyers of other gas already get in the uses that section covers. Hydrogen sales in those uses stop being taxed starting September 1, 2025, and taxes owed before then are still owed.

Labels

Labels: QUICK READ: 133 WORDS. The bill as filed runs 133 words, counting the existing law it amends and the text it strikes. The median 89R bill as filed runs 441 words (derived, 8,702 graded bills, snapshot Oct 19, 2026).PENDING FOREVER. Heard by the House Ways & Means committee on Apr 28, 2025 and left pending. Never voted out. The bill died.

Receipt

The receipt

89R-HB3746 · 2025-03-04

SOLD BY

Rep. Drew DarbyRHouse 72

ITEM

relating to the exemption of certain gas and electricity from sales and use taxes.

WHAT IT DOES

Caption: “certain gas.” Bill: hydrogen. One sentence, and hydrogen buyers get the exemption.

CHARGES

[x] CARVE-OUTanalysis confidence 45%

THE TEXT

“In this section, "gas" includes hydrogen.”

Bill text, introduced version (I)

The only operative change extends an existing tax exemption to a single named product, hydrogen. The caption speaks only of "certain gas and electricity" without naming it.

TOTAL

No first-year general revenue figure available here.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 27, 2025

The fiscal implications of the bill cannot be determined due to the unknown timing of construction of facilities that would consume hydrogen exempted by the bill. The bill could result in significant loss of state sales and use tax revenue.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Mar 4, 2025Filed
Mar 26, 2025Read first time
Mar 26, 2025Referred to Ways & Means
Apr 24, 2025Posting rule suspended
Apr 28, 2025Scheduled for public hearing on . . .
Apr 28, 2025Considered in public hearing
Apr 28, 2025Testimony taken/registration(s) recorded in committee
Apr 28, 2025Left pending in committee

FILED UNDER

CORPORATE WELFARE

THE TEXT

“In this section, "gas" includes hydrogen.”

Bill text, introduced version (I)

The bill widens a sales tax exemption to cover hydrogen, giving a tax break to one fuel product and its buyers.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Drew Darby

Donors

Texans for Truth and Liberty PAC$50KGideon Powell$30,000Dustin Burrows Campaign$28K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Jul 9, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Truth and Liberty PAC$50,000.00

Texans for Truth and Liberty PAC

$50,000.00

Cash: $50,000.00
Paid by others: $0.00
Total: $50,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 8, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007659, 101072052.

Gideon Powell$30,000.00

Dustin Burrows Campaign$27,600.00

Dustin Burrows Campaign

$27,600.00

Cash: $0.00
Paid by others: $27,600.00
Total: $27,600.00

polling $27,600.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · on Aug 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068080.

Money

Missing data does not establish zero giving. Display amounts are rounded.

Texans for Truth and Liberty PAC

$50,000.00

Cash: $50,000.00
Paid by others: $0.00
Total: $50,000.00

Also funds 44 other sitting lawmakers.

Derived recipient stock · Jun 24, 2025 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 8, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101007659, 101072052.

Dustin Burrows Campaign

$27,600.00

Cash: $0.00
Paid by others: $27,600.00
Total: $27,600.00

polling $27,600.00

Also funds 39 other sitting lawmakers.

Derived recipient stock · Sep 13, 2025 to Sep 23, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Team

Sources

Derived itemized flow · on Aug 5, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101068080.

Votes

No floor vote loaded for this bill.

Fiscal

No first-year general revenue figure available here.

LBB estimate · fiscal note version I · source

Sources

Fiscal note · version I · April 27, 2025

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas House · Filed Mar 4, 2025

04/28/2025 H Left pending in committee

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

House committee · Ways & Means · Final status: Died in committee

Companion

SB 1907 by Creighton (identical)

Subjects

Oil & Gas

Taxation--Energy Resources

Text

The text as introduced · 133 words

89R12851 JBD-F

By: Darby
H.B. No. 3746

A BILL TO BE ENTITLED

AN ACT

relating to the exemption of certain gas and electricity from sales

and use taxes.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 151.317, Tax Code, is amended by adding

Subsection (f) to read as follows:

(f) In this section, "gas" includes hydrogen.

SECTION 2. The change in law made by this Act does not

affect tax liability accruing before the effective date of this

Act. That liability continues in effect as if this Act had not been

enacted, and the former law is continued in effect for the

collection of taxes due and for civil and criminal enforcement of

the liability for those taxes.

SECTION 3. This Act takes effect September 1, 2025.