The California Alternative Energy and Advanced Transportation Financing Authority Sales and Use Tax Exclusion (CAEATFA STE) program is designed to foster economic growth and drive investments in advanced manufacturing, alternative energy, and advanced transportation technologies. This program offers businesses a valuable opportunity to reduce their tax burden on equipment purchases that align with California’s clean energy and environmental objectives.

Benefits

For businesses investing in California, the CAEATFA STE Exemption offers various incentives including:

  • Sales and Use Tax Exclusion: Companies can benefit from sales and use tax exclusions on the purchase of qualified property. This includes manufacturing equipment, machinery, and other tangible personal property used in the design, manufacture, production, or assembly of advanced transportation technologies, renewable energy equipment, and energy efficiency products.
  • Cost Savings: The program offers substantial savings on sales and use taxes, effectively lowering the upfront costs of investments in clean technology. This financial relief makes it more feasible for companies to pursue environmentally friendly projects.
  • Competitive Advantage: By reducing the financial burden of clean technology investments, businesses can enhance their competitive position in the market, allowing them to innovate and grow more effectively.

Eligibility

Eligibility for the CAEATFA STE Exemption typically includes criteria such as:

  • Business Type: The program is open to commercial, industrial, and manufacturing businesses engaged in activities related to advanced transportation technologies, renewable energy equipment, or energy efficiency products.
  • Investment Amount: While there is no minimum investment requirement, the program is geared towards substantial investments that contribute to California’s clean energy goals.
  • Geographic Location: Eligible businesses must operate within California and invest in qualifying property that will be used within the state.

Application Deadline and Timeline

The CAEATFA STE program operates under a limited application period each year. The application window opens in early January and typically remains open for approximately three weeks, giving businesses a narrow timeframe to submit their applications.

To maximize your chances of securing tax savings through this competitive program, it’s crucial to prepare in advance. By having your projects reviewed by DMA now, you’ll ensure that your application is complete and ready to submit as soon as the window opens. Don’t miss out on this opportunity—act early to position your business for success.

Free Project Eligibility Review

Discover tax savings for your upcoming projects. Get expert insights into how your upcoming capital investments could qualify for significant tax savings under this program and others like it.

Our free project review will help you identify opportunities to reduce costs and optimize your investments.

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