October 18, 2019 | CIG Tax Insights
After months of hard work from a variety of legislators, businesses, business groups and others, the California Recycling Market Development Act (AB 1583) was signed by Governor Gavin Newsom last week.
Authored by Assembly Member Susan Eggman and co-sponsored by a number of parties including several CALincentives clients like rPlanet Earth, Vivotein and The Almond Company—AB 1583 will update California’s recycling programs and extend the CAEATFA Sales and Use Tax Exclusion program by an additional 5 years. This extension will help grow advanced manufacturing, recycling and other innovative businesses in California.
PROGRAM OVERVIEW: The Treasurer’s Office established the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion to promote high-tech and green manufacturing. This program provides select manufactures a 100% sales and use tax exclusion on purchases of qualified tangible property over 3 years. Through a competitive application and negotiation process, California manufacturers may qualify for this lucrative incentive under any of the following categories: