Tax Guide for Green Technology
Manufacturing

CAEATFA Sales and Use Tax Exclusion

Manufacturers of green technology may qualify to purchase manufacturing equipment without payment of California sales or use tax. This program is administered by the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA). More information about this program can be found on our CAEATFA Sales and Use Tax Exclusion webpage.

Please visit CAEATFA for information on:

• Application materials
• Application process
• CAEATFA regulations
• Other program information

How to obtain the exclusion:

• Complete the application and pay the fees
• Obtain a resolution from the CAEATFA Board
• Provide the exemption certificate to your vendor
• Purchase the equipment on your approved project

Manufacturing Exemption

The law allows manufacturers to obtain a partial exemption of sales and use tax on certain manufacturing and research and development equipment purchases. To be eligible under this law, you must meet all three of these conditions:

• Be engaged in certain types of business, also known as a “qualified person.”
• Purchase “qualified property.”
• Use that qualified property for the uses allowed by this law.

For more information, see our Tax Guide for Manufacturing, and Research & Development, and Electric Power Equipment & Buildings Exemption.