Taxes - As enacted, adds hydrogen gas to the definition of alternative fuel for the purposes of fuel tax law; subjects hydrogen gas to the compressed natural gas tax; exempts hydrogen gas from the sales and use tax. - Amends TCA Title 67.

This bill updates Tennessee's fuel tax laws to include hydrogen gas as an alternative fuel. It subjects hydrogen gas to the same tax rates applied to compressed natural gas while simultaneously exempting it from sales and use taxes. These changes directly affect vehicle owners and businesses using hydrogen-powered fuel cells by adjusting how they pay for fuel. The legislation officially takes effect on January 1, 2025.