Sales Tax Exclusion (STE) Program

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers a Sales and Use Tax Exclusion (STE) program that eliminates state and local sales/use taxes on qualified manufacturing equipment purchases. Eligible manufacturers (businesses, individuals, nonprofits, public agencies, tribal governments) can apply for the exclusion when constructing new facilities or expanding/upgrading existing ones in any California location. The program supports projects that process recycled feedstock, engage in advanced manufacturing, or produce alternative‑source products and advanced‑transportation technologies. Funding is not a cash grant; instead, approved applicants receive a tax‑exemption certificate, potentially saving millions in tax liabilities. The award period is up to five years, with a total estimated funding pool of $100 million and an undefined number of awards. No matched funding or letters of intent are required. • Open to a wide range of applicants (businesses, individuals, nonprofits, public agencies, tribal governments). • Applies statewide across California. • Targets equipment for advanced manufacturing, alternative energy, advanced transportation, and recycling‑related processes. • Tax‑exclusion, not cash; savings realized at point‑of‑sale or via reimbursement. • Period of performance up to 5 years; total program funding $100 M (award count dependent). • No pre‑bid meetings, site visits, or formal submission deadline listed.