2021 California Tire Workshop Series and Presenters

Sales and Use Tax Exclusion (STE) Program for California Manufacturers : $100 MM Awards Annually What • Exclude Sales and Use Tax on eligible manufacturing equipment and machinery • Average tax benefits of 8.5% (state and local) at point of purchase. Example: $15 Million investment on facility, equipment and machinery upgrades  $1,275,000 of Estimated Sales & Use Tax Excluded How • Applicants must be a qualifying manufacturer (as defined), submit an application, and receive approval from the CAEATFA Board. • Each Project is evaluated to ensure a net benefit to the State (fiscal and environmental). • Companies generally have three years to use award. Companies must expend 15% of award within 18 months of approval and complete compliance reports semi-annually and annually. • Fees: Application fee due upon submittal of application and administrative fee(s) due post- approval. • Current per applicant/project maximum award limit of $10 million in STE. How do I start? • Program has seen increased competitiveness; 2019 allocation was awarded by July, 2020 allocation was oversubscribed immediately, and 2021 allocation is currently oversubscribed and set to be fully awarded by mid-2021. • Currently accepting applications to be waitlisted in the event additional funding becomes available. Waitlist expires at the end of the calendar year. • Governor proposes in 2021 budget for equitable recovery for CA businesses and jobs. The job initiative may result in the program receiving another $100 million in STE. • Planning for the future? Contact us to discuss eligibility and process, at caeatfa@sto.ca.gov Recycling: Materials recovery facilities, plastics, green waste and bio- waste Alternative Source: (green energy): Solar PV manufacturers, dairy digesters, biofuels Advanced Manufacturing : Aerospace, medical devices, biopharmaceutical, food production Advanced Transportation: Electric vehicle manufacturers