Jarrell Cook

Bills to extend the California alternative energy and advanced transportation financing authority (CAEATFA) sales tax exclusion introduced

By Jarrell Cook, Legislative Manager, Government Relations

Capitol Update, Jan. 28, 2019

Assembly Member Sabrina Cervantes (D-Riverside) and Senator Cathleen Galgiani (D-Stockton) have introduced AB 176 and SB 162, respectively. Both measures would extend the CAEATFA sales tax exclusion program, which is set to expire on January 1, 2021, until 2030.

The CAEATFA program was the study of a December 2018 report by the Legislative Analyst’s Office (LAO). The LAO recommended allowing the program to expire or transferring the program from the Treasurer to the Department of Tax and Fee Administration and streamlining its process.

California manufacturers have reported mixed experience with the CAEATFA program. Several manufacturers that have taken advantage of the program have found it beneficial. However, many manufacturers have echoed the LAO’s criticism of the program’s application process as cumbersome and not worth the burden relative to California and other state’s tax incentives.

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