CA SB419

Exempts hydrogen fuel from state sales and use taxes beginning July 1, 2026, with the exemption expiring on July 1, 2030

Defines hydrogen fuel as molecular hydrogen sold at hydrogen fuel stations or for use in hydrogen fuel cell electric vehicles or hydrogen internal combustion engine vehicles

Does not apply the exemption to local sales and use taxes, transactions and use taxes, or state taxes dedicated to local government funding (including the Local Revenue Fund 2011)

Requires the California Department of Tax and Fee Administration to report annually to the Legislature starting October 1, 2027, on hydrogen fuel sales volumes and gross receipts

States the purpose is to create tax parity for zero-emission vehicles until California adopts a new transportation funding mechanism that includes hydrogen as a fuel source