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Economic Development Collaborative (EDC) — Sales and Use Tax Exclusion Program for Manufacturers

by Community Contributor • December 22, 2021 • Comments Off

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SALES AND USE TAX EXCULSION PROGRAM FOR MANUFACTURERS

Sales and Use Tax Exclusion (STE) Program, from the California Alternative Energy and Advanced Transportation Financing Authority, 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.

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

Alternative Source product manufacturers,
manufacturers of Advanced Transportation Technologies,
Advanced Manufacturers, and
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.

If you have any questions about the application process, please contact Matt Jumps at (916) 651-5103.

First application period ends January 7, 2022.

CLICK HERE for more information.

About CAEATFA: 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 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.

Looking for NO-COST Business Consulting Services?

The EDC SBDC call team and experienced advisors are available to answer questions and help you navigate today’s complex business environment. The Economic Development Collaborative hosts the Small Business Development Center and is funded in part through a cooperative agreement with the U.S. Small Business Administration. Signing up as a client takes just a few minutes and provides you with lifetime access to all of our no-cost services.

Get started today with no-cost consulting by calling our

Business Assistance Line at 805.409.9159.

Resources and advising are available in English and Spanish.

Stay up-to-date on local, state and federal resources related to the pandemic by visiting our COVID-19 Business Resource page regularly CLICK HERE.