SALT Report 2918 – The California Assembly introduced legislation that amends certain provisions related to the California Alternative Energy and Advanced Transportation Financing Authority program. The CAEATFA program provides financing for qualified businesses to develop and commercialize advanced transportation and alternative energy technologies that will reduce air pollution, conserve energy, and promote economic development and job creation.
Amendments to the Bill include the following:
- The term “project” would be redefined to reflect that a qualified project includes, but is not limited to, machinery and equipment utilized in the state. The Bill removes the requirement that the items be purchased in the state.
- For purposes of the sales and use tax exclusion, a qualified “project” would include tangible personal property that is utilized in the state for the design, manufacture, production, or assembly of advanced manufacturing, advanced transportation technologies, or alternative source products, components, or systems. The Bill removes the requirement that the items be purchased in the state.
- Clarifies that for purposes of the sales and use tax exclusion, an entity located outside of the state or overseas, will be considered a participating party and will be eligible to apply for financial assistance if they commit to opening a manufacturing facility in the state.
- Repeals the peer review requirement for greenhouse gas, air, or water pollution reduction, and energy efficiency projects.
- Removes the requirement that any portion of the $100,000,000 not granted through the sales and use tax exclusion be available to be granted in the subsequent calendar year, provided that the total amount available does not exceed $200,000,000.
This Bill was read for the second time on August 27, 2013 and ordered to a third reading with no further amendments.
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