Bill > SB419

This bill provides a sales and use tax exemption for hydrogen fuel, starting July 1, 2026, through July 1, 2030. The exemption specifically applies to hydrogen fuel sold at hydrogen fuel stations, used in hydrogen fuel cell electric vehicles, or used in hydrogen internal combustion engine vehicles. Importantly, the exemption does not apply to local sales taxes, district transactions and use taxes, or specific state sales taxes dedicated to local government funding (such as those deposited in the Local Revenue Fund 2011). The bill aims to create taxation parity for zero-emission vehicles until California develops a new transportation funding mechanism that considers hydrogen as a fuel source. To track the effectiveness of this exemption, the California Department of Tax and Fee Administration is required to analyze and report on performance indicators, including the amount of hydrogen fuel sold and estimated gross receipts, annually starting October 1, 2027. The legislation defines key terms like "hydrogen fuel," "hydrogen fuel cell," and "hydrogen fuel cell electric vehicle" to provide clarity on the scope of the tax exemption. By taking effect immediately as a tax levy, the bill underscores its urgent intent to support hydrogen fuel adoption in California.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB419