SB 1599 Summary

• Adds hydrogen to existing transaction privilege tax (TPT) and use tax exemptions for sales of natural gas and liquefied petroleum gas used to propel motor vehicles.

• Extends hydrogen exemptions to pipes or valves four inches or larger used to transport hydrogen, and to machinery and equipment used in hydrogen pipeline operations and hydrogen liquefaction.

• Adds hydrogen to exemptions for diversion of gas from pipelines when used solely to fuel compressor equipment in hydrogen pipeline operations or hydrogen liquefaction processes.

• Applies exemptions to both TPT under section 42-5061 and use tax under section 42-5159, treating hydrogen similarly to existing natural gas and liquefied petroleum gas provisions.