Sales and Use Tax Exclusion (STE) Program
Sales Tax Exclusion (STE) Proposed Regulations/Current Regulatory Actions
After CAEATFA adopted emergency regulations in December 2019 to address the 2019 oversubscription and incorporate lessons learned from program implementation, CAEATFA began accepting STE Applications for the 2020 calendar year. By the first Application deadline, the STE Program was oversubscribed for the 2020 calendar year. In March 2020, the CAEATFA Board approved 18 Applications, fully awarding the $100 million in STE. Six Applicants requesting approximately $10 million in STE remain on the waitlist. Additionally, since then, the COVID-19 pandemic has affected previous and prospective STE Program Applicants, with long-term market impact unknown. Given the significant program and market changes, CAEATFA conducted stakeholder outreach and discussions to determine what lessons learned can be applied to the regulations going forward.
- Staff Summary and Proposed Regulation Text (September 8, 2020)
- Proposed Modifications to the STE Program Regulations (July 21, 2020)
- Comments Received on Proposed Modifications
- Invitation for Comments (May 12, 2020)
- Public Comments Received
On October 16, 2020, CAEATFA issued a Notice of Emergency Regulations to make STE Program modifications that address the program’s oversubscription for the last two years, the unprecedented economic impact of the COVID-19 pandemic, incorporate lessons learned from program implementation, add further clarity and specificity in existing regulations provisions, and update and revise regulation and statutory cross-references. The emergency rulemaking package was submitted to the Office of Administrative Law (“OAL”) for review on October 26, 2020. The regulatory action was approved by OAL and became effective upon filing with the Secretary of State on November 4, 2020. For more details, please see the Finding of Emergency and proposed regulation text below.