California Alternative Energy and Advanced Transportation Financing Authority Act: sales and use tax exclusion.
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The California Alternative Energy and Advanced Transportation Financing Authority Act establishes the California Alternative Energy and Advanced Transportation Financing Authority. The act authorizes, until January 1, 2026, the authority to provide financial assistance to a participating party by authorizing exclusions from sales and use tax for certain projects, including those that promote California-based manufacturing, California-based jobs, advanced manufacturing, the reduction of greenhouse gases, or a reduction in air and water pollution or energy consumption. The Sales and Use Tax Law, for the purposes of the taxes imposed pursuant to that law, until January 1, 2026, excludes the lease or transfer of title of tangible personal property constituting one of those projects to any contractor for use in the performance of a construction contract for a participating party that will use that property as an integral part of the approved project.
California SB 86 (20252026) — California Alternative Energy and Advanced Transportation Financing Authority Act: sales and use tax exclusion.
Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The California Alternative Energy and Advanced Transportation Financing Authority Act establishes the California Alternative Energy and Advanced Transportation Financing Authority. The act authorizes, until January 1, 2026, the authority to provide financial assistance to a participating party by authorizing exclusions from sales and use tax for certain projects, including those that promote California-based manufacturing, California-based jobs, advanced manufacturing, the reduction of greenhouse gases, or a reduction in air and water pollution or energy consumption. The Sales and Use Tax Law, for the purposes of the taxes imposed pursuant to that law, until January 1, 2026, excludes the lease or transfer of title of tangible personal property constituting one of those projects to any contractor for use in the performance of a construction contract for a participating party that will use that property as an integral part of the approved project.
Version chain
The bill's text revisions, in order — the diff chain from filing to enrollment.
Do pass and be re-referred to the Committee on [Revenue and Taxation] — 16–0 (pass) · lower
Unfinished Business SB86 McNerney et al. Concurrence — 40–0 (pass) · upper
SB 86 McNerney Senate Third Reading By Wilson — 76–0 (pass) · lower
Placed on suspense file — 7–0 (pass) · upper
Do pass as amended. — 11–0 (pass) · lower
Special Consent SB86 McNerney et al. — 39–0 (pass) · upper
Do pass as amended and be re-referred to the Committee on [Appropriations] — 7–0 (pass) · lower
Do pass, but first be re-referred to the Committee on [Appropriations] — 5–0 (pass) · upper
Sponsors
McNerney — primary (person)
Ashby — coauthor (person)
Caballero — coauthor (person)
Davies — coauthor (person)
Grayson — coauthor (person)
Jackson — coauthor (person)
Timeline
The legislative action history — every referral, reading, and vote.
2025-01-21 Introduced. Read first time. To Com. on RLS. for assignment. To print. introduction, reading-1
2025-01-22 From printer. May be acted upon on or after February 21.
2025-01-29 Referred to Com. on REV. & TAX. referral-committee
2025-03-18 Set for hearing March 26.
2025-03-26 From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 568.) (March 26). Re-referred to Com. on APPR. committee-passage, committee-passage-favorable, referral-committee
2025-03-28 Set for hearing April 7.
2025-04-07 April 7 hearing: Placed on APPR. suspense file.
2025-05-16 Set for hearing May 23.
2025-05-23 From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1191.) (May 23). amendment-passage, committee-passage, committee-passage-favorable
2025-05-23 Read second time and amended. Ordered to second reading. amendment-passage, reading-1, reading-2
2025-05-27 Read second time. Ordered to third reading. reading-1, reading-2
2025-06-02 Ordered to special consent calendar.
2025-06-04 Read third time. Passed. (Ayes 39. Noes 0. Page 1521.) Ordered to the Assembly. passage, reading-1, reading-3
2025-06-05 In Assembly. Read first time. Held at Desk. reading-1
2025-06-16 Referred to Coms. on REV. & TAX. and TRANS. referral-committee
2025-06-19 Re-referred to Coms. on TRANS. and REV. & TAX. pursuant to Assembly Rule 96. referral-committee
2025-07-08 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. committee-passage, committee-passage-favorable, referral-committee
2025-07-15 July 14 set for first hearing. Placed on REV. & TAX. suspense file.
2025-07-15 From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 7. Noes 0.) (July 14). amendment-passage, committee-passage, committee-passage-favorable
2025-07-16 Read second time and amended. Re-referred to Com. on APPR. amendment-passage, reading-1, reading-2, referral-committee
2025-08-20 August 20 set for first hearing. Placed on APPR. suspense file.
2025-08-29 From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29). amendment-passage, committee-passage, committee-passage-favorable
2025-09-02 Read second time and amended. Ordered to second reading. amendment-passage, reading-1, reading-2
2025-09-03 Read second time. Ordered to third reading. reading-1, reading-2
2025-09-03 Read third time and amended. amendment-passage, reading-1, reading-3
2025-09-03 Ordered to third reading.
2025-09-08 Read third time. Passed. (Ayes 76. Noes 0. Page 3003.) Ordered to the Senate. passage, reading-1, reading-3
2025-09-08 In Senate. Concurrence in Assembly amendments pending.
2025-09-09 Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2710.) Ordered to engrossing and enrolling. amendment-passage, committee-passage-favorable
2025-09-16 Enrolled and presented to the Governor at 3 p.m.
2025-10-01 Approved by the Governor. executive-signature
2025-10-01 Chaptered by Secretary of State. Chapter 211, Statutes of 2025. became-law
Source
OpenStates / OpenCivicData bulk snapshot 2026-07-01; origin ocd-bill/8da55b0b-cb83-4ca1-83cb-45798f701ea6. Confidence: reported (aggregated from official California legislature records).