Sales Tax Exclusion (STE) Program

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program provides financial incentives to cutting-edge companies by offering a sales and use tax exclusion to manufacturers purchasing equipment to promote alternative energy, advanced transportation, and recycling, as well as advanced manufacturing. Eligible manufacturers planning to construct a new manufacturing facility or expand or upgrade a currently existing manufacturing facility may apply to CAEATFA for an STE award. The program is available statewide and has a total estimated available funding of $100,000,000. The expected award announcement is ongoing, and the period of performance is 5 years unless extended. • Eligible applicants include businesses, individuals, nonprofits, public agencies, and tribal governments. • Eligible geographies include all areas within the state of California. • The funding source is state funding, and the funding method is through advances and reimbursements. • No letter of intent is required, and no matched funding is necessary.