A four-phase review process

All CAEATFA applications are evaluated to determine the extent to which the anticipated benefits to the State from a project exceed the estimated cost of the avoided sales and use tax. CAEATFA Staff evaluates the fiscal and environmental benefits that stem directly from the sales and use tax exclusion. Only the anticipated marginal additional production (and resulting fiscal and environmental benefits) associated with the sales and use tax exclusion are included for purposes of evaluating applications.

The marginal additional production associated with the sales and use tax exclusion is determined based on an estimated increase in equipment purchases resulting from the sales and use tax exclusion. That is, because the sales and use tax exclusion in effect lowers the cost of purchasing capital equipment, applicants are assumed to purchase more such equipment than would be the case in the absence of the sales and use tax exclusion.

  • 1. Application Submission

    • Application submitted 60 days prior to a monthly Board meeting.
    • Application Fee of 0.05% of Qualified Property (QP).
    • Two-part application process: Part A (Narrative) & Part B (Spreadsheet).

  • 2. Application Evaluation

    • Staff reviews application.
    • Applicant responds to staff questions.
    • Project evaluated based on fiscal and environmental benefits to State.
    • Staff makes recommendation whether to approve application.

  • 3. CAEATFA Board Review

    • Board reviews staff recommendation and votes at Board meeting.
    • Board resolution authorizes Executive Director to enter into a legal agreement with the applicant.

  • 4. Post Approval Process

    • Enters into legal agreement with CAEATFA.
    • Administrative fee of 0.4% of QP.
    • Semi-annual reporting of purchases.
    • 3 Years to purchase equipment (standard).
    • 15% of QP must be purchased within 1 year.