Solar & Battery Regulation & Incentive Programs

Sales and Use Tax Exemption for Electric Power Generation and Storage Equipment

Program Overview


Category:
Financial Incentive
Program Type:
Sales Tax Incentive
Implementing Sector:
State
State:
California
Eligible Storage Technologies:
Geothermal Electric, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Combined Heat & Power, Fuel Cells using Non-Renewable Fuels, Landfill Gas, Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels
Incentive Amount:
100%
Administrator:
California Department of Tax and Fee Administration
Applicable Sectors:
Commercial, Industrial, Agricultural, Appliance Manufacturers
Start Date:
01/01/2018
Expiration Date:
07/01/2030
Last Updated:
07/27/2020

Summary

AB 389 of 2017 created an exemption from the sales and use tax for "qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, or storage and distribution, of electric power." The exemption also applies to contractors who purchase the equipment in the service of a contract with a qualified person. "Qualified person" is defined in the statutes. 

The exemption does not apply to the generation or production of electricity from nuclear energy, large hydro, or fossil fuels, except when used in cogeneration. However, the exemption does apply to the storage and distribution of electric power from any source.  

The exemption also applies to "special purpose buildings and foundations used as an integral part of the generation or production or storage and distribution of electric power."




Authorities

NameEnacted DateEffective DateExpired Date
Cal Rev & Tax Code § 6377.107/25/201701/01/201807/01/2030