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Sales Tax Exclusion (STE) Program

Grantor:
State Treasurer's Office
Departmental Grant ID:
(YY)-SM(###)
Portal ID:
1971
Status:
Active
Opportunity Type:
  • Grant
Last Updated:
Categories:

Details

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

Application deadline The date (and time, where applicable) by which all applications must be submitted to the grantor.
Ongoing
Expected award announcement The date on which the grantor expects to announce the recipient(s) of the grant.
CAEATFA staff review each application and make a recommendation to the CAEATFA Board. The Board then considers and votes whether to approve an application at regularly scheduled monthly Board meetings.
Period of performance The length of time during which the grant money must be utilized.
CAEATFA can award $100 million of Sales and Use Tax Exclusion on an annual bases (calendar year). Applications are reveiwed on a rolling bases. Approved applicants are required to purchase or execute purchase orders no less than 15% of the total amount listed in the approval resolution within 18 months year of Board approval. Generally, approved applicants must make all Qualified Property purchases within three years of application approval. Depending on the project's circumstances, applicants may request additional time during the initial application.

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.
Yes ( see Description for details )
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.

Resources

For questions about this grant, contact:
Xee Moua, 1-916-653-3303, xmoua@sto.ca.gov

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