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Bill

S 5422

Exempts from sales and use tax zero-emission school buses

2025 Regular Session Introduced by Jake Ashby and 2 co-sponsors

Exempts zero-emission school buses from state sales and use taxes to lower upfront costs for districts, boosting adoption; affects districts, manufacturers, and tax revenue.

REPORTED AND COMMITTED TO FINANCE
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Bill Summary · S 5422

Summary of Bill S 5422 – Exempts from sales and use tax zero-emission school buses

Overview

Bill S 5422 seeks to provide a sales and use tax exemption for zero-emission school buses. The measure is currently moving through the legislative process, with a focus on supporting school districts and other purchasers of zero-emission buses by reducing the upfront cost of these vehicles.

What the bill would do

  • Exempt zero-emission school buses from state sales and use taxes.
  • The term “zero-emission” typically refers to buses that do not produce tailpipe emissions (commonly electric or hydrogen fuel cell buses). The bill would specify the eligibility criteria and definitions in its text.

Key provisions and changes (as indicated by the bill’s title and status)

  • Tax relief target: Purchases (and/or uses) of zero-emission school buses.
  • Coverage: State sales and use taxes (possible interactions with local taxes would be determined by the bill’s language).
  • Scope: Applies to school buses meeting the zero-emission standard defined in the bill.

Note: The exact eligibility criteria, sunset provisions, applicability to leases versus purchases, and any administrative requirements would be detailed in the full text of the bill.

Who would be affected

  • School districts, boards of education, and other entities responsible for procuring school buses.
  • Manufacturers and dealers of zero-emission school buses.
  • Tax revenue streams at the state level (and potentially impact on local sales tax collections, depending on how the exemption is structured in the final law).

Legislative status and timeline

  • Introduced: February 21, 2025.
  • Committee actions: Referred to Budget and Revenue (February 21, 2025).
  • Progress: Reported and Committed to Finance (March 12, 2025) – indicating advancement from the committee stage to consideration by the Finance Committee.
  • Related activity: S 5524 (prior-session); Assembly companion A 6115 (companion) indicating parallel or related measures in the other house.

Sponsors and related bills

  • Primary sponsor: James Skoufis.
  • Co-sponsors: Jake Ashby, Kevin S. Parker.
  • Related: S 5524 (prior-session), A 6115 (companion) in the Assembly.

Potential impact and considerations

  • Fiscal: The exemption would reduce state (and potentially local) tax revenue on eligible bus purchases, with costs dependent on vehicle uptake and the definition of eligibility.
  • Policy: Aimed at accelerating adoption of zero-emission buses by lowering purchase costs for school districts.
  • Implementation: Requires clear definitions, eligibility criteria, and administration rules (e.g., whether the exemption applies to leases, grants or rebates that may accompany the purchase, any cap on exemptions, and sunset provisions).

Bottom line

S 5422 proposes a targeted tax exemption to encourage the transition to zero-emission school buses by reducing the tax burden on buyers. It has cleared a House committee and moved toward Finance in the Senate, with a companion measure in the Assembly and related prior-session legislation, signaling continued activity in the 2025 session.

Compiled from official sources — confirm details with the bill’s official record.

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