Zero Emissions Vehicle (ZEV) Sales Tax Exemption for Transit

A sales and use tax exemption is established for zero emission buses purchased by transit agencies or federally recognized tribes for public transportation. The exemptions expire once $14 million in cumulative benefits are reached. For this tax exemption, zero emission bus means a bus that emits no exhaust gas from the onboard source of power, other than water vapor.

(Reference Senate Bill 5801, 2025 and Revised Code of Washington 82.38.030 and 82.38.075)