Bill > SB419

This bill introduces a sales and use tax exemption for hydrogen fuel, effective July 1, 2026, specifically for fuel sold at hydrogen fuel stations, used in hydrogen fuel cell electric vehicles, or used in hydrogen internal combustion engine vehicles. The bill defines key terms like "hydrogen fuel cell" (an electrochemical energy conversion device) and "hydrogen fuel station" (a business selling hydrogen fuel directly to consumers). Importantly, the exemption does not apply to local sales and use taxes or specific state sales tax rates dedicated to local government funding. The legislation aims to create tax parity for zero-emission vehicles until California develops a new transportation funding mechanism that includes hydrogen as a fuel source. The bill requires the California Department of Tax and Fee Administration to annually report on the amount of hydrogen fuel sold and its gross receipts, with performance tracking from 2027 to 2030. The tax exemption is set to expire on July 1, 2030, and the bill takes effect immediately as a tax levy, reflecting California's ongoing efforts to support alternative fuel technologies and reduce transportation-related emissions.

Budget and Finance

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