California Alternative Energy and Advanced Transportation Financing Authority

Sales and Use Tax Exclusion (STE) Program

About the STE Program

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) provides a sales and use tax exclusion for advanced manufacturers and manufacturers of alternative source and advanced transportation products, components or systems. The STE Program is currently authorized through 2020.

The STE Program was originally authorized by Senate Bill 71 (Padilla, 2010), which allowed CAEATFA to provide a sales tax exclusion for manufacturers of alternative source and advanced transportation products. In 2012 the STE Program was expanded by Senate Bill 1128 (Padilla) to include advanced manufacturing projects.

The STE Program was recently expanded by Assembly Bill 199 (Eggman, 2015) to include equipment that processes or utilizes recycled feedstock.

The full text of SB 1128 and AB 199 can be found at the California Legislative Counselís website.

NEW: As of 11/17/15 the acceptance of new applications under the STE program has been suspended until further notice. Please see staff summary for details.

Additional Information

Contact Information

If you have any questions about the STE Program please contact:

James Shimp at (916) 651-5103