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Bill

SB 419

Hydrogen fuel.

2025-2026 Regular Session Introduced by Bob Archuleta and 3 co-sponsors

SB 419 exempts hydrogen fuel from state sales taxes starting July 1, 2026, promoting zero-emission vehicles and supporting California's clean energy goals until 2030.

In Senate. Consideration of Governor's veto pending.
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WeVote Research Nonpartisan
Bill Summary · SB 419

Summary of SB 419: Hydrogen Fuel Tax Exemption

Bill Overview

  • Bill Number: SB 419
  • Title: Hydrogen Fuel
  • Introduced: February 18, 2025
  • Status: In Senate; consideration of Governor's veto pending
  • Author: Caballero
  • Coauthors: Gipson, Archuleta, Umberg

Purpose and Intent

SB 419 aims to promote the use of hydrogen fuel by providing a sales and use tax exemption for its sale and consumption in California. The bill seeks to create parity in taxation for zero-emission vehicles, particularly hydrogen-powered vehicles, until a new transportation funding mechanism is established that includes hydrogen as a viable fuel source.

Key Provisions

  • Tax Exemption:

    • Effective July 1, 2026, the bill exempts the gross receipts from the sale of hydrogen fuel from state sales and use taxes.
    • Hydrogen Fuel Definition: The bill defines hydrogen fuel as molecular hydrogen intended for use in:
    • Hydrogen fuel cell electric vehicles
    • Hydrogen internal combustion engine vehicles
    • Fuel sold at hydrogen fuel stations

  • Local Tax Exemptions:

    • The exemption does not apply to local sales and use taxes or transactions and use taxes imposed by counties, cities, or districts.
    • It also does not apply to certain state sales and use tax rates dedicated to local government funding, including those deposited into the Local Revenue Fund 2011.

  • Performance Indicators:

    • The California Department of Tax and Fee Administration is required to analyze and report on:
    • The estimated amount of hydrogen fuel sold at retail in California each fiscal year.
    • The estimated gross receipts from the sale of hydrogen fuel each fiscal year.
    • Reports are to be submitted annually, starting by October 1, 2027.

  • Duration of Exemption:

    • The exemption is set to remain in effect until July 1, 2030, at which point it will be repealed unless extended.

Impact

  • Affected Parties:

    • Retailers selling hydrogen fuel, consumers using hydrogen fuel vehicles, and local governments that rely on sales tax revenues.

  • Environmental Goals:

    • The bill supports California's broader goals of reducing greenhouse gas emissions and promoting clean energy technologies by incentivizing the use of hydrogen as a clean fuel alternative.

Procedural Aspects

  • The bill is classified as a tax levy and is set to take effect immediately upon passage.
  • It has undergone several legislative actions, including amendments and approvals in both the Assembly and Senate, and is currently awaiting the Governor's decision following a veto.

Conclusion

SB 419 represents a significant step towards enhancing the viability of hydrogen fuel in California's transportation sector by alleviating tax burdens associated with its sale and use. The bill's focus on performance indicators also ensures accountability and tracking of hydrogen fuel's market growth within the state.

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

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