OpenState of CaliforniaAgency ID (YY)-SM(###)

Sales Tax Exclusion (STE) Program

State Treasurer's Office · State of California

At a glance

Sales Tax Exclusion (STE) Program is an open California state grant opportunity from the State Treasurer's Office (State of California). Applications are accepted on an ongoing basis. Total estimated funding is $100M. Applicant types listed as eligible include business, individual, nonprofit, public agency and tribal government. It is listed on the California Grants Portal. Cost sharing is not required.

Summary assembled from the official notice's fields. The official notice governs.

Key facts

Opened: Sep 1, 2010
Close date: Ongoing
Award floor: Not specified
Award ceiling: Not specified
Est. total funding: $100,000,000
Expected awards: Not specified
Matching funds: Not required
Funding instrument: Grant

Program details (as published on the California Grants Portal)

Type: Grant
Funding source: State — Exclusion of State and local sales and use tax on eligible manufacturing equipment
Matching funds: Not Required
Funding method: Advances & Reimbursement(s) — To use the exclusion, approved applicants must present Qualified Property vendors with a certificate made pursuant to the California Department of Tax and Fee Administration (CDTFA). No money is given to approved applicants, rather approved applicants do not pay the tax at the time of purchase, or under specific circumstances, seek reimbursement from the vendor or CDTFA for sales and use tax paid on Qualified Property purchases prior to approval.
Estimated number of awards: Dependant on number of submissions received, application process, etc.
Estimated award amounts: Dependant on number of submissions received, application process, etc.
Award period: 5y unless extended
Expected award announcement: Ongoing
Letter of intent: Not required
Geography: Available statewide
How to submit: By email: STEprogram@treasurer.ca.gov
Latest change note: Updated information and grants data.

Who can apply

Applicant categories as listed on the California Grants Portal. GrantsJunction maps them to detailed applicant types for search and matching.

Business
Individual
Nonprofit
Public Agency
Tribal Government

Additional information on eligibility (from the listing)

The STE is available to the following categories of manufacturers in California: Alternative Source products (solar manufacturers, renewable hydrogen, biofuels, dairy biodigesters);Advanced Transportation Technologies (ZEV vehicles and charging stations);Advanced Manufacturers (food production, aerospace, biopharmaceutical); andmanufacturers that process Recycled feedstock or utilize it in the production of another product or soil amendment.

Can your organization apply?

A quick check against the listed applicant types — other requirements in the notice still apply.

Based on the published notice. Review the official notice for complete eligibility requirements.

What it funds

Purpose and description as published on the California Grants Portal.

Purpose

CAEATFA supports California's mission to provide financial incentives to cutting-edge companies by offering a sales and use tax exclusion to manufacturers purchasing equipment to promote alternative energy, advanced transportation and recycling, as well as advanced manufacturing. These manufacturers create tens of thousands of high-paying, permanent jobs that bolster the state's economy.

Description

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) Sales and Use Tax Exclusion (STE) Program (the “Program”) excludes from sales and use taxes purchases of Qualified Property if its use is either to process Recycled feedstock or using Recycled feedstock in the production of another product or soil amendment; or that is used in an Advanced Manufacturing process; or that is used to manufacture Alternative Source products or Advanced Transportation Technologies. Eligible manufacturers planning to construct a new manufacturing facility or expand or upgrade a currently existing manufacturing facility may apply to CAEATFA for an STE award, and if approved, the purchases of Qualified Property for the project are not subject to state and local sales and use tax.Please refer to https://www.treasurer.ca.gov/caeatfa/ste/regulations/index.asp and https://www.treasurer.ca.gov/caeatfa/ste/faq.asp#program for more information.

Program page on the agency site ↗

How to apply

0 of 8 done · progress saved in this browser

Read the program guidelinesThe agency's solicitation or guidelines set eligibility details, scoring criteria and required documents. Open ↗
Confirm eligibility and fitCheck your organization type and location (see Geography above).
Find out how to submitBy email: STEprogram@treasurer.ca.gov
Request letters of support and partner commitmentsPartners need time to write and sign letters; ask early.
Finish a full draft of the application and budgetFollow the guidelines' format exactly; state programs often require specific forms and attachments.
Ask the program contact any questions earlyXee Moua · xmoua@sto.ca.gov Open ↗
Internal review and sign-offLeave time for leadership or board approval and a final proofread.
Submit while funds remainSubmit a few days early and keep your submission confirmation.

Past applications & awards

Historical data · not a prediction

Reported by the agency for this listing

Fiscal year 2025–2650 applications · 6 awards
Fiscal year 2024–2537 applications · 59 awards
Fiscal year 2023–2436 applications · 33 awards
Fiscal year 2022–2341 applications · 2 awards

Counts as published on the California Grants Portal. Award counts can read zero until decisions are announced.

Awards published: 94
Total awarded: $3,690,360,170
Median award: $17,433,375 calculated
Smallest – largest: $1,040,162 – $239,233,728

Recipients by type: Business (93), Public Agency (1)

Areas served: Santa Clara County (12), Los Angeles County (9), Fresno County (6), San Diego County (6), Alameda County (5), Kern County (5), Imperial County (5), Monterey County (4), Tulare County (4), Merced County (4), Madera County (4), Contra Costa County (4)

Largest awards to organizations

BHE Renewables, LLCGeothermal Brine and Steam Production$239,233,728 · FY 2023–24
BHE Renewables, LLCGeothermal Brine and Steam Production$236,966,824 · FY 2024–25
Robert Bosch Semiconductor LLCSemiconductor Manufacturing$235,000,000 · FY 2024–25
Hell's Kitchen LithiumCo 1 LLCLithium Recovery and Processing$179,425,837 · FY 2023–24
Sparkz Inc.Lithium Battery Material Manufacturing$177,725,118 · FY 2024–25
Applied Materials, Inc.Semiconductor Manufacturing$156,000,000 · FY 2024–25
Lam Research CorpSemiconductor Fabrication Equipment Manufacturing$137,000,000 · FY 2024–25
HC (Contra Costa), LLCRenewable Hydrogen Production$119,617,224 · FY 2023–24
PSGM3, LLC (Pacific Steel Group)Mixed Metals Recycling$118,483,412 · FY 2024–25
Element Lancaster 1 LLCRenewable Hydrogen$118,483,412 · FY 2024–25

Source: California Grants Portal grant award data. Awards to individuals are counted but not named. Past awards show who was funded; they do not predict future decisions.

Program contact (as published)

Xee Moua
xmoua@sto.ca.gov
1-916-653-3303

Quick answers

Who is eligible to apply for “Sales Tax Exclusion (STE) Program”?

The official listing names these applicant types as eligible: Business, Individual, Nonprofit, Public Agency and Tribal Government. It adds: “The STE is available to the following categories of manufacturers in California: Alternative Source products (solar manufacturers, renewable hydrogen, biofuels, dairy biodigesters);Advanced Transportation Technologies (ZEV vehicles and charging stations);Advanced Manufacturers (f…” Additional restrictions may apply; review the full guidelines.

How much funding is available through “Sales Tax Exclusion (STE) Program”?

Per the notice, total estimated program funding is $100,000,000.

How do I apply for “Sales Tax Exclusion (STE) Program”?

Applications go directly to State Treasurer's Office, not through GrantsJunction. Submission: by email to STEprogram@treasurer.ca.gov. Read the program guidelines on the agency's site first; state programs set their own forms and registration requirements.

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