Bill > S02175

This bill provides a tax exemption for low-emission and energy efficient vehicles from retail sales and compensating use taxes. Specifically, the bill defines such vehicles as those certified by the U.S. Environmental Protection Agency (EPA) under a specific federal statute, or alternatively, vehicles that achieve an air pollution score and greenhouse gas score of nine or better on the EPA's green vehicle guide. The New York State Department of Taxation is required to maintain and update a public website list of qualifying vehicles by make, model, and year. To offset the potential revenue loss from this tax exemption, the bill stipulates that the exemption will be funded by proceeds from auctions of emissions allowances by the Department of Environmental Conservation and the New York State Energy Research and Development Authority, with a maximum offset of $27 million. The tax exemption will take effect 90 days after becoming law and will automatically expire on December 31, 2028, providing a time-limited incentive for purchasing low-emission and energy efficient vehicles.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S2175