California Sales & Use Tax Exclusion

Summary

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) supports California's mission to provide financial incentives to cutting-edge companies by offering a sales and use tax (STE) exclusion to manufacturers that promote alternative energy and advanced transportation. These manufacturers create tens of thousands of high-paying, permanent jobs that bolster the state's economy. The STE Program is currently authorized through 2025.

The CAEATFA Sales and Use Tax Exclusion (STE) Program (the “Program”) excludes purchases of Qualified Property from sales and use taxes.

ELIGIBILITY

The STE is available to the following four categories of manufacturers in California:

  • Alternative Source product manufacturers

  • Manufacturers of Advanced Transportation Technologies

  • Advanced Manufacturers

  • Manufacturers that process recycled feedstock or utilize recycled feedstock in the production of another product or soil amendment.

Manufacturers of components of Alternative Sources and Advanced Transportation Technologies are also eligible if the component constitutes a “Green Component,” defined as the component or system within Advanced Transportation Technologies or Alternative Source products that is responsible for or required to enable the increase in energy efficiency, Alternative Source generation, or pollution reduction.

PROCESS

Applications have two parts and are submitted to CAEATFA@treasurer.ca.gov

  1. Project description, legal questionnaire and contact information

  2. Self-scoring Excel spreadsheet that scores projects financial and environmental benefits