Bill > A07261

This bill creates a sales tax exemption for low-emission and energy efficient vehicles in New York State. Specifically, the bill defines such vehicles as those either certified by the US Environmental Protection Agency (EPA) under a specific federal code, or vehicles that have achieved an air pollution score and greenhouse gas score of nine or better on the EPA's green vehicle guide. The New York State tax department is required to maintain and update a public website listing these qualifying vehicles. The tax exemption will be financially offset by proceeds from auctions of emissions allowances, with a maximum offset of $27 million. The exemption will take effect 90 days after becoming law and will remain in place until December 31, 2028. The goal appears to be incentivizing the purchase of environmentally friendly vehicles by reducing their sales tax burden, while ensuring the tax exemption is fiscally neutral through emissions allowance auction proceeds.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7261