California Alternative Energy and Advanced Transportation Financing Authority

Applicant Procedures
Sales and Use Tax Exclusion (STE) Program: Conveyance/Reconveyance

Introduction

In order to receive the sales and use tax exclusion for the STE Program, Applicants must convey title of their purchased Qualified Property to the Authority for purposes of reconveyance back to the Applicant. This is done through a conveyance/reconveyance agreement (the “Transaction Agreement”). Each time the Applicant makes a purchase or group of purchases they will need to submit a Transaction Agreement for approval by the Authority.

Materials Required

Procedures

Transaction Agreement

  1. Ensure you are using the current template.
  2. Prepare the Transaction Agreement by inputting the necessary information as described in captions throughout the template.
  3. Remove any inapplicable highlighted or italicized language that does not pertain to the Company or transaction.
  4. Insert the name and title of the representative who is authorized to sign on behalf of the Company and is identified on the signature certificate provided to the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA).
  5. Insert the appropriate Date of the conveyance. *Note: this date MUST match the Conveyance Date listed on Exhibit A.

Exhibit A

  1. Ensure you are using the current template.
  2. Insert the appropriate information in the Exhibit A headers, including acquisition range dates, and Company name.
  3. Input all qualified property information under corresponding columns.
  4. The "Description and Purpose" need to be defined in layman's terms.
  5. If the Qualified Property being conveyed is an "Ancillary Purchase," please check “yes.” These purchases cannot exceed 1% of the total approved Qualified Property Amount.
  6. Include the corresponding line item number from the Exhibit B that the equipment falls under.
  7. Check to ensure that the Total Amount on Exhibit A is the same as what is listed on the transaction agreement.
  8. Save in Excel/soft copy format.

Exhibit B

Ensure you are using the current template.

If the Company's Exhibit B is not in the updated numbered format:

  1. Copy and Paste the Exhibit B equipment list that is located on the last page of the Company's Master Agreement into the current template.
  2. All line items of equipment must be numbered in the corresponding column of the template.

Check for the Administrative Fee

  1. The administrative fee is calculated at .004 of the total amount of the Qualified Property purchased.

Submit to CAEATFA

Submit the following to a CAEATFA analyst with a “CC” to the CAEATFA inbox:

  1. Transaction Agreement (PDF)
  2. Exhibit A (Excel/soft copy)
  3. Exhibit B (PDF)
  4. Check for Administrative Fee (PDF)
  5. Once the Analyst has approved the documents free from error, submit the originals to:
    CAEATFA
    915 Capitol Mall Rm 538
    Sacramento, CA 95814

Contacts

Melanie Holman, STE Program Analyst
(916) 651-5103

CAEATFA Inbox