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CaliforniaSB 862025-2026 Regular SessionSenateWALLET

California Alternative Energy and Advanced Transportation Financing Authority Act: sales and use tax exclusion.

Sponsored By: Jerry McNerney (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Sales tax break for approved projects

The law excludes sales and use tax on leases or title transfers of property that make up an approved project. Since 2018-09-21, it also covers property transferred to a contractor when used as an integral part of the project's construction. To qualify, the property must be part of a project approved by the Authority. This exclusion ends on 2028-01-01.

Report on jobs and environmental impacts

The Authority must report to the Legislature by 2027-01-31. The report reviews the sales and use tax exclusion’s net effects on jobs and economic output. It also reviews net environmental effects. This reporting rule ends on 2028-01-01.

Authority can refinance project debt

The Authority can issue refunding bonds to refinance its debt or other public agency debt. It can pay redemption premiums and accrued interest, and fund some project additions or improvements. The Authority may hold and invest bond proceeds in escrow until they are used. Before refunding debt it did not issue, it must find the project qualifies under current law through 2027 and under updated references on 2028-01-01.

Clear project rules and 2028 timing

The law sets clear definitions for terms like project, advanced manufacturing, and participating party. The Authority uses these definitions through 2027. On 2028-01-01, the sales and use tax exclusion section switches to updated definition references. The temporary definitions expire on 2028-01-01.

Sponsors & Cosponsors

Sponsor

  • Jerry McNerney

    Democratic • Senate

Cosponsors

  • Angelique Ashby

    Democratic • Senate

  • Anna Caballero

    Democratic • Senate

  • Laurie Davies

    Republican • House

  • Timothy Grayson

    Democratic • Senate

  • Corey Jackson

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 207 • No: 0

Senate vote • 9/9/2025

Item 32 — Senate SFLOOR

Yes: 40 • No: 0

House vote • 9/8/2025

Item 198 — Assembly AFLOOR

Yes: 76 • No: 0

legislature vote • 8/29/2025

Vote in CX25

Yes: 11 • No: 0

legislature vote • 7/14/2025

Vote in CX19

Yes: 7 • No: 0

legislature vote • 7/7/2025

Vote in CX22

Yes: 16 • No: 0

Senate vote • 6/4/2025

Item 98 — Senate SFLOOR

Yes: 39 • No: 0

legislature vote • 5/23/2025

Vote in CS61

Yes: 6 • No: 0

legislature vote • 4/7/2025

Vote in CS61

Yes: 7 • No: 0

legislature vote • 3/26/2025

Vote in CS83

Yes: 5 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State. Chapter 211, Statutes of 2025.

    10/1/2025Senate

  2. Approved by the Governor.

    10/1/2025legislature

  3. Enrolled and presented to the Governor at 3 p.m.

    9/16/2025legislature

  4. Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2710.) Ordered to engrossing and enrolling.

    9/9/2025Senate

  5. In Senate. Concurrence in Assembly amendments pending.

    9/8/2025Senate

  6. Read third time. Passed. (Ayes 76. Noes 0. Page 3003.) Ordered to the Senate.

    9/8/2025House

  7. Read third time and amended.

    9/3/2025House

  8. Read second time. Ordered to third reading.

    9/3/2025House

  9. Ordered to third reading.

    9/3/2025House

  10. Read second time and amended. Ordered to second reading.

    9/2/2025House

  11. From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).

    8/29/2025House

  12. August 20 set for first hearing. Placed on APPR. suspense file.

    8/20/2025House

  13. Read second time and amended. Re-referred to Com. on APPR.

    7/16/2025House

  14. July 14 set for first hearing. Placed on REV. & TAX. suspense file.

    7/15/2025House

  15. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14).

    7/15/2025House

  16. From committee: Do pass and re-refer to Com. on REV. & TAX. (Ayes 16. Noes 0.) (July 7). Re-referred to Com. on REV. & TAX.

    7/8/2025House

  17. Re-referred to Coms. on TRANS. and REV. & TAX. pursuant to Assembly Rule 96.

    6/19/2025House

  18. Referred to Coms. on REV. & TAX. and TRANS.

    6/16/2025House

  19. In Assembly. Read first time. Held at Desk.

    6/5/2025House

  20. Read third time. Passed. (Ayes 39. Noes 0. Page 1521.) Ordered to the Assembly.

    6/4/2025Senate

  21. Ordered to special consent calendar.

    6/2/2025Senate

  22. Read second time. Ordered to third reading.

    5/27/2025Senate

  23. Read second time and amended. Ordered to second reading.

    5/23/2025Senate

  24. From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1191.) (May 23).

    5/23/2025Senate

  25. Set for hearing May 23.

    5/16/2025Senate

Bill Text

  • Chaptered

    10/1/2025

    HTML

  • Enrolled

    9/12/2025

    HTML

  • Amended Assembly

    9/3/2025

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  • Amended Assembly

    9/2/2025

    HTML

  • Amended Assembly

    7/16/2025

    HTML

  • Amended Senate

    5/23/2025

    HTML

  • Introduced

    1/21/2025

    HTML

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