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, we have 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.