Texas Comptroller Rules Hydrogen Not Exempt from Sales Tax for Data Centers

The Texas Comptroller of Public Accounts issued a private letter ruling determining that hydrogen is not considered a “gas” exempt from sales and use tax under Section 151.317 of the Texas Tax Code. The Comptroller ruled that if a taxpayer purchases hydrogen or hydrogen fuel cells to power a data center, it must pay tax on those purchases as taxable tangible personal property, not exempt gas. [Tex. Comptroller of Pub. Accts, PLR No. 20250530143651, 11/21/25]

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