CHBC Submits Letter of Support for AB 3000

The CHBC submitted a letter of support for AB 3000 (Friedman): Sales and Use Taxes. In the letter, the CHBC expressed that AB 3000 will ensure parity between the taxation of hydrogen and electricity when sold as transportation fuels for zero emission vehicles. In doing so, consumers purchasing fuel cell electric vehicles will be treated equally. The temporary reduction in the cost of hydrogen fuel will ease the transition for consumers into fuel cell electric vehicles.

Moreover, creating tax parity among technologies will reduce the consumer’s cost of ownership and accelerate the adoption of fuel cell electric vehicles. Because of its nascent use as a transportation fuel, fueling costs cannot yet compete with gasoline. However, as the industry grows, the cost of fuel will decline substantially. AB 3000’s exemption of hydrogen fuel from the state and local sales and use taxes sunsets on January 1, 2030. This 2030 sunset date reflects industry estimates for fueling costs becoming competitive with gasoline and electricity.

Read the full letter here >>