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Texas Rules Hydrogen Purchases for Data Centers Are Not Sales Tax Exempt

  • The Texas Comptroller ruled that hydrogen is not classified as a “gas” exempt from sales and use tax for data centers.
  • Purchases of hydrogen or hydrogen fuel cells for powering data centers are subject to sales tax.
  • Hydrogen is considered taxable tangible personal property, not an exempt gas, under Section 151.317 of the Texas Tax Code.

Source: news.bloombergtax.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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