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California

California

Incentives/Policies for Energy Efficiency

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Sales and Use Tax Exclusion for Advanced Transportation and Alternative Energy Manufacturing Program   

Last DSIRE Review: 11/07/2014
Program Overview:
State: California
Incentive Type: Industry Recruitment/Support
Eligible Efficiency Technologies:
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Municipal Solid Waste, "Advanced Transportation", Tidal Energy, Wave Energy, Ocean Thermal, Fuel Cells using Renewable Fuels
Applicable Sectors: Industrial
Amount:100% exemption
Terms:Projects must apply for an exemption through the California Alternative Energy and Advanced Transportation Financing Authority
Program Budget:$100,000,000 per year
Start Date:3/24/2010
Expiration Date:1/1/2021
Web Site: http://www.treasurer.ca.gov/caeatfa/ste/index.asp
Authority 1:
Date Enacted:
Date Effective:
Expiration Date:
CA Public Resources Code § 26011.8
3/24/2010, subsequently amended
3/24/2010
1/1/2021
Authority 2:
Date Enacted:
Date Effective:
Expiration Date:
CA Revenue and Taxation Code § 6010.8
3/24/2010, subsequently amended
3/24/2010
1/1/2021
Authority 3:
4 CA ADC § 10030, et seq.
Summary:

SB 71 of 2010 established a sales and use tax exclusion (STE) for eligible projects on property utilized for the design, manufacture, production or assembly of advanced transportation technologies or alternative source (including energy efficiency) products, components, or systems. The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) is administering the program.

To date, the Program has approved financial assistance for private entities in the following fields: electric vehicle manufacturing, solar photovoltaic manufacturing, landfill gas capture and production, biogas capture and production (dairies and waste water treatment plants), demonstration hydrogen fuel production, electric vehicle battery manufacturing, biomass processing and fuel production, and others.

Eligibility Criteria

  • Applicants must show the property to be purchased will be used to design, manufacture, produce or assemble an eligible advanced transportation technology or alternative source product – including energy efficiency – component or system.
  • This definition includes manufacturers of alternative source electricity generation equipment such as solar panels or wind turbines. But it excludes the purchase of that equipment for power generation.

Application Evaluation

  • Applications that meet the project definition criteria will be evaluated based on criteria developed and specified in the program regulations.
  • These evaluation criteria are designed to measure and quantify the fiscal and environmental benefits of the project and to compare the benefits to the cost of the STE.
  • Applicants will receive points in the areas of fiscal benefits and environmental benefits which will translate into a numerical score.
  • Applications that receive a total of 1,000 or more points and a total environment benefits score of 100 or more points will be recommended to the CAEATFA Board for approval.

 Program Restrictions

  • There are no STE minimum or maximum limits for individual projects.
  • Applicants will be required to make at least twenty five (25) percent of the purchases identified in their application within one year of application approval.
  • All purchases must be made within three years following application approval, unless CAEATFA grants a longer time period.

Prior Use

  • CAEATFA will be able to extend the STE to any qualified property for which the participating party can make a representation that there has been no functional use of the qualified property prior to it being conveyed to CAEATFA.

Fees

  • Application Fee – equal to .0005 of the total purchase price of qualified property identified in the application. The minimum application fee shall be a minimum of $250 and shall not exceed $5,000. Payment of the fee is required for a submitted application to be considered complete.
  • Administrative Fee – equal to .004 of the total purchase price of the qualified property purchased. The administrative fee shall be a minimum of $15,000 and shall not exceed $350,000.

Those interested in participating in the SB 71 Program should contact the California Alternative Energy and Advanced Transportation Financing Authority.
 

 


 
Contact:
  Alejandro Ruiz
California Alternative Energy and Advanced Transportation Financing Authority
915 Capitol Mall, Rm 457
Sacramento, CA 95814
Phone: (916) 651-5101
E-Mail: alejandro.ruiz@treasurer.ca.gov
Web Site: http://www.treasurer.ca.gov/caeatfa/index.asp
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.