Bill
S 2175
Overview: Bill Number: S 2175, Title: Exempts low-emission and energy efficient vehicles from retail sales and compensating use taxes, Status: REFERRED TO BUDGET AND REVENUE, Intro
Overview: Bill Number: S 2175, Title: Exempts low-emission and energy efficient vehicles from retail sales and compensating use taxes, Status: REFERRED TO BUDGET AND REVENUE, Introduced: June 25, 2025
Purpose and Intent: The goal of this bill is to incentivize the purchase of low-emission and energy-efficient vehicles by providing a tax exemption on retail sales and compensating use taxes.
Key Provisions:
- Exempts the sale of new or used vehicles that meet certain emissions and fuel efficiency standards from state and local retail sales and compensating use taxes
- Defines eligible vehicles as those that emit 50 grams or less of CO2 per mile and have a combined fuel economy of at least 45 miles per gallon
Affected Parties and Impacts:
- Consumers purchasing qualifying low-emission and energy-efficient vehicles would benefit from the tax exemption
- Automakers and dealers of eligible vehicles may see increased sales
- State and local governments may experience a reduction in tax revenue from vehicle sales
Procedural and Timeline Considerations:
- The bill has been referred to the Senate Committee on Budget and Revenue
- If enacted, the tax exemption would take effect on January 1, 2026
Compiled from official sources — confirm details with the bill’s official record.
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