California – Green Technology Tax Guide

SALT Report 3071 – The California State Board of Equalization released a tax guide for businesses involved in green technologies to clarify many of the tax laws specific to this industry.  The BOE states that because this industry has seen tremendous growth over the past few years, many businesses are finding it difficult to keep up with the ever-changing sales and use tax laws.

The green technology guide is divided in to the following categories:

Solar Industry – This section discusses the application of sales and use tax to solar cells, solar panels, and solar modules.  Also, the guide discusses construction contracts, materials and fixtures, rebates, and sales of farm solar equipment.

Green Manufacturing Incentives – This section discusses the green manufacturing exclusion applicable to purchases of manufacturing equipment that is currently offered by the California Alternative Energy and Advanced Transportation Financing Authority. In addition, the guide discusses the partial exemption for purchases of manufacturing and research and development equipment that will be available on July 1, 2014.

Rebates and Tax Credits – This section discusses the California clean vehicle rebate project applicable to the purchase or lease of qualified plug-in electric vehicles.  Also, the guide discusses the federal tax incentives available for various plug-in vehicles.  The federal incentives range from $2,500 up to $7,500.

Resources – This section provides a variety of information including links to forms and publications, statutory and regulatory information, and access to live help from BOE customer service representatives.

For Further Information

California State Board of Equalization – Industry Guide for Green Technology