Sales Tax Exclusion (STE) Program

Purpose: CAEATFA supports California's mission to provide financial incentives to cutting-edge companies by offering a sales and use tax exclusion to manufacturers purchasing equipment to promote alternative energy, advanced transportation and recycling, as well as advanced manufacturing. These manufacturers create tens of thousands of high-paying, permanent jobs that bolster the state's economy. Description: The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program (the “Program”) excludes from sales and use taxes purchases of Qualified Property if its use is either to process Recycled feedstock or using Recycled feedstock in the production of another product or soil amendment; or that is used in an Advanced Manufacturing process; or that is used to manufacture Alternative Source products or Advanced Transportation Technologies. Eligible manufacturers planning to construct a new manufacturing facility or expand or upgrade a currently existing manufacturing facility may apply to CAEATFA for an STE award, and if approved, the purchases of Qualified Property for the project are not subject to state and local sales and use tax.Please refer to https://www.treasurer.ca.gov/caeatfa/ste/regulations/index.asp and https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#program for more information. Eligibility Requirements Eligible Applicants: Business Individual Nonprofit Public Agency Tribal Government The STE is available to the following categories of manufacturers in California: Alternative Source products (solar manufacturers, renewable hydrogen, biofuels, dairy biodigesters);Advanced Transportation Technologies (ZEV vehicles and charging stations);Advanced Manufacturers (food production, aerospace, biopharmaceutical); andmanufacturers that process Recycled feedstock or utilize it in the production of another product or soil amendment. Eligible Geographies: Available statewide Important Dates Expected award announcement The date on which the grantor expects to announce the recipient(s) of the grant. Ongoing Period of performance The length of time during which the grant money must be utilized. 3y unless extended Funding Details Total estimated available funding The total projected dollar amount of the grant. $100,000,000 Expected number of awards A single grant opportunity may represent one or many awards. Some grantors may know in advance the exact number of awards to be given. Others may indicate a range. Some may wish to and wait until the application period closes before determining how many awards to offer; in this case, a value of “Dependent” will display. Dependent Estimated amount per award Grant opportunities representing multiple awards may offer awards in the same amount or in varied amounts. Some may wish to wait until the application period closes before determining per-award amounts; in this case, a value of “Dependent” will display. Dependent Letter of Intent Required? Certain grants require that the recipient(s) provide a letter of intent. No Requires Matched Funding? Certain grants require that the recipient(s) be able to fully or partially match the grant award amount with another funding source. No Funding Source: The funding source allocated to fund the grant. It may be either State or Federal (or a combination of both), and be tied to a specific piece of legislation, a proposition, or a bond number. Other Funding Source Notes: Exclusion of State and local sales and use tax on eligible manufacturing equipment Funding Method: The manner in which the grant funding will be delivered to the awardee. Funding methods include reimbursements (where the recipient spends out-of-pocket and is reimbursed by the grantor) and advances (where the recipient spends received grant funds directly). Advances & Reimbursement(s) Funding Method Notes: To use the exclusion, approved applicants must present Qualified Property vendors with a certificate made pursuant to the California Department of Tax and Fee Administration (CDTFA). No money is given to approved applicants, rather approved applicants do not pay the tax at the time of purchase, or under specific circumstances, seek reimbursement from the vendor or CDTFA for sales and use tax paid on Qualified Property purchases prior to approval. How to Apply State agencies/departments recommend you read the full grant guidelines before applying. Grant guidelines Resources Grantor’s site Subscribe to grant updates Planned events For questions about this grant, contact: Xee Moua, 1-916-653-3303, [email protected] Similar to This Grant Disadvantaged Communities Department of Health Care Services California Services to Science Academy (CSSA) Cohort 2.0: Technical Support and Assistance for Promising and Innovative Prevention Programs 1 week ago More Details about California Services to Science Academy (CSSA) Cohort 2.0: Technical Support and Assistance for Promising and Innovative Prevention Programs Disadvantaged Communities Workforce Development Board High Road to Construction Careers 2026 (HRCC 2026) Grant Program 1 week ago More Details about High Road to Construction Careers 2026 (HRCC 2026) Grant Program Disadvantaged Communities San Gabriel and Lower Los Angeles Rivers and Mountains Conservancy Proposition 4 Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 2 weeks ago More Details about Proposition 4 Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024 Agriculture CA Department of Food and Agriculture Healthy Soils Program Block Grant 3 weeks ago More Details about Healthy Soils Program Block Grant

Purpose: CAEATFA supports California's mission to provide financial incentives to cutting-edge companies by offering a sales and use tax exclusion to manufacturers purchasing equipment to promote alternative energy, advanced transportation and recycling, as well as advanced manufacturing. These manufacturers create tens of thousands of high-paying, permanent jobs that bolster the state's economy. Description: The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program (the “Program”) excludes from sales and use taxes purchases of Qualified Property if its use is either to process Recycled feedstock or using Recycled feedstock in the production of another product or soil amendment; or that is used in an Advanced Manufacturing process; or that is used to manufacture Alternative Source products or Advanced Transportation Technologies. Eligible manufacturers planning to construct a new manufacturing facility or expand or upgrade a currently existing manufacturing facility may apply to CAEATFA for an STE award, and if approved, the purchases of Qualified Property for the project are not subject to state and local sales and use tax.Please refer to https://www.treasurer.ca.gov/caeatfa/ste/regulations/index.asp and https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#program for more information. Eligibility Requirements Eligible Applicants: Business Individual Nonprofit Public Agency Tribal Government The STE is available to the following categories of manufacturers in California: Alternative Source products (solar manufacturers, renewable hydrogen, biofuels, dairy biodigesters);Advanced Transportation Technologies (ZEV vehicles and charging stations);Advanced Manufacturers (food production, aerospace, biopharmaceutical); andmanufacturers that process Recycled feedstock or utilize it in the production of another product or soil amendment. Eligible Geographies: Available statewide Important Dates Expected