taxes

Motor Vehicle Tax Guide

Hydrogen-Powered Motor Vehicles

The sale or use of certain hydrogen-powered motor vehicles is exempt from motor vehicle tax.

A qualifying hydrogen-powered motor vehicle is a vehicle that meets Phase II standards established by the California Air Resources Board (CARB) as of Sept. 1, 2007, for an ultra-low emissions vehicle II or stricter Phase II emission standards established by that board and

• is hydrogen-power capable and has a fuel economy of at least 45 miles per gallon; or
• is fully hydrogen-powered.

The CARB website is https://ww2.arb.ca.gov/homepage.

The exemption does not apply to a battery powered electric motor vehicle that uses chemical energy, stored in rechargeable battery packs, to power an electric motor and motor controllers.

Purchasers must prove that a hydrogen-powered motor vehicle meets the exemption requirements by providing documentation, such as manufacturer specifications, to their local county tax assessor-collector (CTAC) at the time of titling and registration.

When preparing the Form 130-U, Application for Texas Title and/or Registration (PDF), the dealer or purchaser of a hydrogen-powered motor vehicle must note the exemption for the CTAC by entering "hydrogen-powered motor vehicle exempt under Section 152.090," or similar wording, in Box 38 "Exemption claimed under the Motor Vehicle Sales and Use Tax Law because:" section of the form.

96-254
(03/2025)