SB 1424: Sales and use taxes: zero-emission vehicle fueling or charging.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, or on the storage, use, or other consumption in this state of, tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including a partial exemption for the sale of, or the storage, use, or consumption of, qualified tangible personal property purchased for use by a qualified person to be used primarily in any stage of the manufacturing, processing, refining, fabricating, or recycling of tangible personal property, beginning at the point any raw materials are received by the qualified person and introduced into the process and ending at the point at which the manufacturing, processing, refining, fabricating, or recycling has altered tangible personal property to its completed form, including packaging, if required.

Existing law (backfill requirement) requires an amount that equals the estimated revenue loss to the General Fund from the allowance of the above-described exemptions, with the concurrence of the Department of Finance, to be transferred from the Greenhouse Gas Reduction Fund to the General Fund, as prescribed.

This bill would, beginning July 1, 2027, define “processing” to include the altering, converting, conditioning, or other preparation of hydrogen or electricity for the purposes of selling the hydrogen for fueling or the electricity for charging a vehicle and would define “qualified tangible personal property” to include hydrogen fueling station equipment and charging station equipment and component parts used as an integral part of those activities. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program.

This bill would provide that the backfill requirement does not apply with respect to the exemptions allowed by the bill, as specified.

Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 30, 2026June 29 set for second hearing. Placed on suspense file.
2. June 30, 2026June 29 hearing. Held in committee and under submission.
3. June 17, 2026From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
4. June 15, 2026June 15 set for first hearing canceled at the request of author.
5. June 1, 2026Referred to Com. on REV. & TAX.
6. May 22, 2026In Assembly. Read first time. Held at Desk.
7. May 22, 2026Read third time. Passed. (Ayes 33. Noes 0. Page 4422.) Ordered to the Assembly.
8. May 20, 2026Ordered to special consent calendar.
9. May 14, 2026Read second time. Ordered to third reading.
10. May 14, 2026From committee: Do pass. (Ayes 7. Noes 0. Page 4276.) (May 14).
11. May 12, 2026Set for hearing May 14.
12. May 11, 2026May 11 hearing: Placed on APPR. suspense file.