STATE OF NEW YORK ________________________________________________________________________ 6670 2025-2026 Regular Sessions IN SENATE March 19, 2025 ___________ Introduced by Sens. JACKSON, GALLIVAN, HOYLMAN-SIGAL, LIU, MAY, PARKER -- read twice and ordered printed, and when printed to be committed to the Committee on Budget and Revenue AN ACT to amend the tax law, in relation to exempting the sale of the first thirty-five thousand dollars of a battery, electric, or plug-in hybrid electric vehicle from state sales and compensating use taxes, and to authorize cities and counties to elect such exemption The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (a) of section 1115 of the tax law is amended 2 by adding a new paragraph 47 to read as follows: 3 (47) (i) Half of the receipts from the first thirty-five thousand 4 dollars of the retail sale or lease of a new battery, electric, or plug- 5 in hybrid electric vehicle. For purposes of this paragraph the term 6 "battery, electric, or plug-in hybrid electric vehicle" means a motor 7 vehicle, as defined in section one hundred twenty-five of the vehicle 8 and traffic law, that: 9 (A) has four wheels; 10 (B) was manufactured for use primarily on public streets, roads and 11 highways; 12 (C) the powertrain of which has not been modified from the original 13 manufacturer's specifications; 14 (D) is rated at not more than eight thousand five hundred pounds gross 15 vehicle weight, or is a school bus, as defined in section one hundred 16 forty-two of the vehicle and traffic law; 17 (E) has a maximum speed capability of at least fifty-five miles per 18 hour; and 19 (F) is propelled at least in part by an electronic motor and associ- 20 ated power electronics which provide acceleration torque to the drive 21 wheels sometime during normal vehicle operation, and that draws elec- 22 tricity from a battery that: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07767-03-5
S. 6670 2 1 (I) has a capacity of not less than four kilowatt hours; and 2 (II) is capable of being recharged from an external source of elec- 3 tricity. 4 (ii) All of the receipts from the first thirty-five thousand dollars 5 of the retail sale or lease of a new battery, electric, or plug-in 6 hybrid electric vehicle, where such vehicle is assembled in the United 7 States utilizing union labor. 8 § 2. Section 1160 of the tax law is amended by adding a new subdivi- 9 sion (d) to read as follows: 10 (d) The new battery, electric, or plug-in hybrid electric vehicles 11 exemption provided for in paragraph forty-seven of subdivision (a) of 12 section eleven hundred fifteen of this chapter shall not apply to or 13 limit the imposition of the tax imposed pursuant to this article. 14 § 3. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 15 1210 of the tax law, as amended by section 5 of part J of chapter 59 of 16 the laws of 2021, is amended to read as follows: 17 (ii) Any local law, ordinance or resolution enacted by any city, coun- 18 ty or school district, imposing the taxes authorized by this subdivi- 19 sion, shall omit the residential solar energy systems equipment and 20 electricity exemption provided for in subdivision (ee), the commercial 21 solar energy systems equipment and electricity exemption provided for in 22 subdivision (ii), the commercial fuel cell electricity generating 23 systems equipment and electricity generated by such equipment exemption 24 provided for in subdivision (kk) [and], the clothing and footwear 25 exemption provided for in paragraph thirty of subdivision (a) of section 26 eleven hundred fifteen of this chapter, and the battery, electric, or 27 plug-in hybrid electric vehicle exemption provided for in paragraph 28 forty-seven of subdivision (a) of section eleven hundred fifteen of this 29 chapter unless such city, county or school district elects otherwise as 30 to such residential solar energy systems equipment and electricity 31 exemption, such commercial solar energy systems equipment and electric- 32 ity exemption, commercial fuel cell electricity generating systems 33 equipment and electricity generated by such equipment exemption [or], 34 such clothing and footwear exemption, or such battery, electric, or 35 plug-in hybrid electric vehicle exemption provided for in paragraph 36 forty-seven of subdivision (a) of section eleven hundred fifteen of this 37 chapter. 38 § 4. Paragraph 47 of subdivision (a) of section 1115 of the tax law, 39 as added by section one of this act, is amended to read as follows: 40 (47) (i) Half of the receipts from the first thirty-five thousand 41 dollars of the retail sale or lease of a new battery[,] or electric[, or 42 plug-in hybrid electric] vehicle. For purposes of this paragraph the 43 term "battery[,] or electric[, or plug-in hybrid electric] vehicle" 44 means a motor vehicle, as defined in section one hundred twenty-five of 45 the vehicle and traffic law, that: 46 (A) has four wheels; 47 (B) was manufactured for use primarily on public streets, roads and 48 highways; 49 (C) the powertrain of which has not been modified from the original 50 manufacturer's specifications; 51 (D) is rated at not more than eight thousand five hundred pounds gross 52 vehicle weight, or is a school bus, as defined in section one hundred 53 forty-two of the vehicle and traffic law; 54 (E) has a maximum speed capability of at least fifty-five miles per 55 hour; and
S. 6670 3 1 (F) is propelled [at least in part] by an electronic motor and associ- 2 ated power electronics which provide acceleration torque to the drive 3 wheels sometime during normal vehicle operation, and that draws elec- 4 tricity from a battery that: 5 (I) has a capacity of not less than four kilowatt hours; and 6 (II) is capable of being recharged from an external source of elec- 7 tricity. 8 (ii) All of the receipts from the first thirty-five thousand dollars 9 of the retail sale or lease of a new battery[,] or electric[, or plug-in 10 hybrid electric] vehicle, where such vehicle is assembled in the United 11 States utilizing union labor. 12 § 5. Subdivision (d) of section 1160 of the tax law, as added by 13 section two of this act, is amended to read as follows: 14 (d) The new battery[,] or electric[, or plug-in hybrid electric] vehi- 15 cles exemption provided for in paragraph forty-seven of subdivision (a) 16 of section eleven hundred fifteen of this chapter shall not apply to or 17 limit the imposition of the tax imposed pursuant to this article. 18 § 6. Subparagraph (ii) of paragraph 1 of subdivision (a) of section 19 1210 of the tax law, as amended by section three of this act, is amended 20 to read as follows: 21 (ii) Any local law, ordinance or resolution enacted by any city, coun- 22 ty or school district, imposing the taxes authorized by this subdivi- 23 sion, shall omit the residential solar energy systems equipment and 24 electricity exemption provided for in subdivision (ee), the commercial 25 solar energy systems equipment and electricity exemption provided for in 26 subdivision (ii), the commercial fuel cell electricity generating 27 systems equipment and electricity generated by such equipment exemption 28 provided for in subdivision (kk), the clothing and footwear exemption 29 provided for in paragraph thirty of subdivision (a) of section eleven 30 hundred fifteen of this chapter, and the battery[,] or electric[, or 31 plug-in hybrid electric] vehicle exemption provided for in paragraph 32 forty-seven of subdivision (a) of section eleven hundred fifteen of this 33 chapter unless such city, county or school district elects otherwise as 34 to such residential solar energy systems equipment and electricity 35 exemption, such commercial solar energy systems equipment and electric- 36 ity exemption, commercial fuel cell electricity generating systems 37 equipment and electricity generated by such equipment exemption, such 38 clothing and footwear exemption, or such battery[,] or electric[, or 39 plug-in hybrid electric] vehicle exemption provided for in paragraph 40 forty-seven of subdivision (a) of section eleven hundred fifteen of this 41 chapter. 42 § 7. This act shall take effect on the first day of a sales tax quar- 43 terly period, as described in subdivision (b) of section 1136 of the tax 44 law, beginning at least one hundred twenty days after the date this act 45 shall have become a law and shall apply to sales made on or after such 46 date; provided, however, that sections four, five and six of this act 47 shall take effect ten years after such effective date and shall apply to 48 sales made on and after such date.