Sales Tax Exclusion (STE) Program

About this program

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) offers the Sales Tax Exclusion (STE) Program, providing a sales and use tax exclusion for manufacturers purchasing equipment to promote alternative energy, advanced transportation, recycling, and advanced manufacturing. This initiative supports California's economic growth by incentivizing cutting-edge companies to create high-paying, permanent jobs.

Eligible applicants include businesses, individuals, nonprofits, public agencies, and tribal governments involved in producing Alternative Source products (e.g., solar, biofuels), Advanced Transportation Technologies (e.g., ZEV vehicles), Advanced Manufacturing (e.g., aerospace, biopharmaceuticals), or utilizing Recycled feedstock. Applicants must be planning to construct or expand a manufacturing facility in California and submit a letter of intent.