Sales Tax Exclusion (STE) Program
The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program offers a sales and use tax exclusion to manufacturers purchasing equipment for alternative energy, advanced transportation, and recycling purposes, as well as advanced manufacturing. This program aims to create high-paying, permanent jobs and boost the state's economy.
About the role
The program is open to various types of manufacturers including solar manufacturers, ZEV vehicle producers, food production companies, and those processing recycled feedstock. Applications can be submitted for new or expanded manufacturing facilities.
Responsibilities
- Purchase of Qualified Property for projects is exempt from state and local sales and use taxes.
- Eligible manufacturers must provide a certificate from the California Department of Tax and Fee Administration (CDTFA) to qualify for the tax exclusion.
- Grants are available statewide and the total amount is $100,000,000.
- Grant recipients receive the tax exemption upon presenting the required certificate to vendors.
Requirements
To be eligible, applicants must be businesses, individuals, nonprofits, public agencies, or tribal governments. Specific categories of manufacturers include alternative source products, advanced transportation technologies, advanced manufacturers, and those processing recycled feedstock.
Qualifications
No specific qualifications are listed for applicants, but they must meet the eligibility criteria outlined above.
Skills
While not explicitly stated, skills related to manufacturing, environmental sustainability, and economic development are likely beneficial.
Benefits
The primary benefit is the tax exemption on qualifying purchases, which can significantly reduce costs for manufacturers. Additionally, the program supports job creation and economic growth.
Pay
The program does not specify a salary or payment structure for recipients.
Schedule
The program is ongoing, and the timeline for utilizing the grant money is 5 years unless extended.