California Grants Sales and Use Tax Break To Tesla Motors

Monday, December 30th, 2013

 
 
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California recently approved a sales and use tax exclusion for Tesla Motors. Tesla is a California-based company that designs, manufactures, and sells electric cars. This exclusion will save Tesla an estimated $34.7 million in tax.

California law authorizes the California Alternative Energy and Advanced Transportation Financing Authority ("CAEATFA") to approve sales and use tax exclusions for green technology manufacturers. These exclusions apply to purchases of tangible personal property used in the design, manufacture, production, or assembly of advanced manufacturing, advanced transportation technologies, or alternative source products, components, or systems.

CAEATFA recently approved Tesla's application for an exclusion. The exclusion will apply to Tesla's purchases of manufacturing equipment for its production facilities in California. The value of this equipment is approximately $415 million, and the exclusion amounts to approximately $34.7 million in tax savings.

http://www.treasurer.ca.gov/caeatfa/staff/2013/20131217/4a1.pdf


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TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

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