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Tax CreditCaliforniaActiveVerified

CAEATFA Sales & Use Tax Exemption — Clean Manufacturing Equipment

California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA)CA-CAEATFA-SUTRefreshed 13 days ago
Do I qualify?
Who can apply

Businesses

Government-funded

Max funding

Varies

Amount varies

Type

Tax Credit

Reduces tax liability

Deadline

Rolling

No fixed cutoff

Timing

Annual tax return

Claim with year-end filing

Complexity

Moderate

File with tax return

About This Program

Full state and local sales and use tax exemption (7.25–10%) on equipment purchases for California manufacturers of solar, wind, batteries, EVs, fuel cells, and green building materials. Reduces equipment procurement costs with board pre-approval.

Key Requirements & Eligibility

  • 1Manufacturer must be in California in a qualifying industry: solar, wind, batteries, EVs, fuel cells, green building
  • 2Exemption applies to manufacturing equipment, machinery, and tools used in qualifying production
  • 3Application to CAEATFA board required before purchasing equipment
  • 4Certificate of Exemption presented to equipment vendor at purchase
  • 5No minimum investment required, though minimum $1M recommended for cost-effectiveness

Do I qualify?

Answer the questions below for a rules-based self-assessment of your fit for this program. This is informational — final determinations are made by the administering agency.

0 of 5 answered

1.Manufacturer must be in California in a qualifying industry: solar, wind, batteries, EVs, fuel cells, green building

2.Exemption applies to manufacturing equipment, machinery, and tools used in qualifying production

3.Application to CAEATFA board required before purchasing equipment

4.Certificate of Exemption presented to equipment vendor at purchase

5.No minimum investment required, though minimum $1M recommended for cost-effectiveness

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