Partial Sales and Use Tax Exemption for Zero-Emission Transit Buses

This program does not apply to homeowners. The sales tax exemption covers only zero-emission transit buses purchased by public agencies that are eligible for California's Low Emission Truck and Bus Purchase Vouchers program.

If you manufacture or sell zero-emission transit buses to qualifying public agencies, those buses are exempt from California state sales and use taxes, reducing the customer's total acquisition cost. Ensure your buyer is eligible under the Low Emission Truck and Bus Purchase Vouchers program to claim the exemption.

This sales and use tax exemption targets zero-emission transit buses sold to public agencies participating in the Low Emission Truck and Bus Purchase Vouchers program. The exemption reduces the state tax burden on zero-emission bus purchases, supporting California's goal to decarbonize public transit fleets; eligibility is tied to the voucher program's qualification criteria.