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 law updates Tennessee's fuel tax rules to include hydrogen gas as an alternative fuel. It requires hydrogen to be taxed at the same rate as compressed natural gas when used in vehicles, while also exempting it from sales and use taxes. These changes apply to anyone purchasing or using hydrogen fuel in the state starting January 1, 2025. The update ensures that hydrogen is treated consistently with other alternative fuels like compressed natural gas under existing tax laws.