California Exempts Cleantech from Sales Tax

California Governor Schwarzenegger and State legislative leaders have reached a deal to exempt cleantech manufacturing equipment to produce clean energy and technology products, vehicles, and fuels from the state sales tax.

California is one of only three states that tax capital equipment used to manufacture other products. The new legislation (SB 71) removes a significant disincentive for firms to manufacture products in California. 

"With the passage of this legislation, California’s leaders will have removed a major barrier to the growth of the state’s clean energy industry. This legislation will stimulate the creation of thousands of clean energy jobs in California," says John Boesel, CALSTART  CEO, a statewide organization that serves as a catalyst for the clean transportation technology sector.

"California has taken the right policy steps to clean up cars, trucks, and buses.  This legislation is the right step to give California a fighting chance at making sure the next generation of clean vehicles and fuels are built in the state," said Boesel.

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