CAEATFA Sales and Use Tax Incentive

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) works with California businesses to provide a variety of financial incentives. Through a competitive application and negotiation process for manufacturers, CAEATFA provides a 100% sales and use tax exclusion (STE) on the purchase of qualified manufacturing and R&D machinery and equipment. Manufacturers may qualify under any of the following general categories:

• Advanced Manufacturing
• Alternative Source Product Manufacturing
• Manufacturing of Advanced Transportation Technologies
• Manufacturing of Products through the Processing or Utilization of Recycled Feedstock

With $100M available annually, the CAEATFA STE allows an awardee to purchase qualified property associated with the activities above—completely free of California sales and use tax for a period of 36 months.

Combining our background in California sales and use tax and deep experience with the program, our CAEATFA team led by Alex Tran, has successfully represented clients to more than $100M in CAEATFA STE awards, including over $40M in the last 12 months.

If you’re interested in learning more about how we can help your business through a CAEATFA STE award, please see our contact information below for a complimentary feasibility assessment. The CAEATFA STE program applies more broadly than most businesses believe.