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S 7073

Provides an exemption for the sale of the first $35,000 of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes

2025 Regular Session Introduced by Pat Fahy

S 7073 - Electric Vehicle Sales Tax Exemption OverviewBill Number: S 7073 Title: Provides an exemption for the sale of the first $35,000 of a battery, electric, or plug-in hybrid

REFERRED TO BUDGET AND REVENUE
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Bill Summary · S 7073

S 7073 - Electric Vehicle Sales Tax Exemption

Overview

Bill Number: S 7073
Title: Provides an exemption for the sale of the first $35,000 of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes
Status: REFERRED TO BUDGET AND REVENUE
Introduced: April 01, 2025

Purpose and Intent

The primary goal of this bill is to incentivize the adoption of electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) by providing a sales tax exemption. The legislation aims to make these environmentally-friendly vehicles more affordable for consumers, thereby encouraging a shift away from traditional gasoline-powered cars and reducing greenhouse gas emissions.

Key Provisions

  • Exempts the first $35,000 of the sale price of a new battery electric, plug-in hybrid electric, or hydrogen fuel cell vehicle from state sales and compensating use taxes
  • Applies to both retail sales and leases of eligible vehicles
  • Exemption is available for the purchase or lease of up to one qualifying vehicle per individual or household

Affected Parties and Impacts

  • Consumers purchasing or leasing new EVs and PHEVs will benefit from the sales tax exemption, making these vehicles more affordable
  • Automakers and dealers of electric and plug-in hybrid vehicles may see increased demand and sales as a result of the tax incentive
  • State and local governments will forgo a portion of sales tax revenue from the exempted vehicle sales, though this may be offset by increased EV adoption and associated economic and environmental benefits

Procedural and Timeline Considerations

The bill has been referred to the Senate Budget and Revenue Committee for consideration. If approved by the committee, it would then proceed to a full vote in the state Senate. If passed by the Senate, the bill would then move to the state House of Representatives for further review and voting. Ultimately, the governor would need to sign the legislation for it to become law.

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

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