SB-419 • 2026

Hydrogen fuel.

Energy Taxes

Vetoed

The latest official action shows the governor vetoed this bill. Check the bill history to see whether lawmakers later overrode that veto.

Sponsor: Caballero
Last action: 2026-03-02
Official status: Veto sustained.
Effective date: Not listed

Plain English Breakdown

The official source does not provide information on whether the bill was overridden after being vetoed.

Hydrogen Fuel Tax Exemption

The bill creates an exemption from state sales and use taxes for hydrogen fuel starting July 1, 2026.

What This Bill Does

Exempts hydrogen fuel from state sales and use taxes after July 1, 2026.
Does not apply the tax exemption to local sales and use taxes or transactions and use taxes imposed by cities, counties, or districts.
Does not exempt hydrogen fuel from state sales and use tax rates used for funding local government projects.

Who It Names or Affects

Retailers selling hydrogen fuel in California
Consumers buying or using hydrogen fuel in California

Terms To Know

Hydrogen Fuel: A type of clean energy that can be used to power vehicles and generate electricity.
Sales and Use Tax Law: The law that sets rules for taxing the sale, storage, use, or consumption of goods in California.

Limits and Unknowns

Does not apply to local taxes imposed by cities, counties, or districts.
Does not exempt hydrogen fuel from state sales and use tax rates used for funding local government projects.
The governor vetoed this bill, but lawmakers could still override the veto.

Bill History

2026-03-02 California Legislative Information
Veto sustained.
2026-03-02 California Legislative Information
Stricken from file.
2025-10-01 California Legislative Information
In Senate. Consideration of Governor's veto pending.
2025-10-01 California Legislative Information
Vetoed by the Governor.
2025-09-16 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-09-09 California Legislative Information
Assembly amendments concurred in. (Ayes 37. Noes 3. Page 2715.) Ordered to engrossing and enrolling.
2025-09-08 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-08 California Legislative Information
Read third time. Passed. (Ayes 70. Noes 0. Page 3004.) Ordered to the Senate.
2025-09-03 California Legislative Information
Read second time. Ordered to third reading.
2025-09-02 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-08-29 California Legislative Information
From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).
2025-08-20 California Legislative Information
August 20 set for first hearing. Placed on APPR. suspense file.
2025-07-15 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14). Re-referred to Com. on APPR.
2025-07-07 California Legislative Information
July 7 set for first hearing. Placed on REV. & TAX. suspense file.
2025-07-01 California Legislative Information
June 30 hearing postponed by committee.
2025-06-23 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-06-09 California Legislative Information
Referred to Com. on REV. & TAX.
2025-06-03 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-02 California Legislative Information
Read third time. Passed. (Ayes 36. Noes 0. Page 1393.) Ordered to the Assembly.
2025-05-23 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
From committee: Do pass. (Ayes 5. Noes 0. Page 1199.) (May 23).
2025-05-20 California Legislative Information
Set for hearing May 23.
2025-05-19 California Legislative Information
May 19 hearing: Placed on APPR. suspense file.
2025-05-15 California Legislative Information
Set for hearing May 19.
2025-05-14 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 1082.) (May 14). Re-referred to Com. on APPR.
2025-05-05 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on REV. & TAX.
2025-03-18 California Legislative Information
Set for hearing May 14.
2025-02-26 California Legislative Information
Referred to Com. on REV. & TAX.
2025-02-19 California Legislative Information
From printer. May be acted upon on or after March 21.
2025-02-18 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 419, Caballero.
Hydrogen fuel.
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 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.
This bill would, on and after July 1, 2026, provide an exemption from the taxes imposed by the Sales and Use Tax Law for the gross receipts from the sale in this state of, and the storage, use, or other consumption in this state of, hydrogen fuel, as defined.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the
Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws.
This bill would provide that the exemption created by the bill does not apply to local sales and use taxes or transactions and use taxes.
Existing law imposes or dedicates certain state sales and use tax rates for local funding, including through the Local Revenue Fund 2011.
This bill would provide that the exemption created by the bill does not apply to those state sales and use tax rates imposed or dedicated for local government funding, including those rates for which revenues are deposited into the Local Revenue Fund 2011.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would also include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Read the full stored bill text

Download Bill PDF