CAEATFA Overview
Established on March 1, 2010, SB 71 (Padilla) CAEATFA’s STE segment advances the state’s goals of advancing economic development, creating high quality employment opportunities, and lessening the state’s dependence on fossil fuels. To support these goals, CAEATFA provides $115 million each calendar year for a full, sales and use tax exclusion (STE) on equipment and machinery used in an Advanced Manufacturing process. Employer in high tech, clean tech, and biotech are eligible to apply.
Under current regulation, CAEATFA Sales and Use Tax Exclusion is authorized to award up to a maximum $115 million annually through 2029. Between how quickly past funds were exhausted and the complex application submission rules, businesses need to be strategic and ahead of the curve if they want to negotiate/secure a CAEATFA award before the additional funds are also exhausted. The California Treasurer’s Office oversees this program under which both legislative and the Governor’s support has been reliable throughout the history of the agency. Visit the CAEATFA website at:
https://www.treasurer.ca.gov/caeatfa/index.asp