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California bills · 2025-2026 Regular Session

California SB 86

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

  1. Introduced
  2. In committee
  3. Passed Senate
  4. Passed House
  5. To Governor
  6. Became law

Sponsors

Cosponsors (5)

Summary

Official abstract published by the California legislature· summary

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. This bill would extend to January 1, 2028, the authorization to provide financial assistance in the form of a sales and use tax exclusion for projects approved by the authority. The bill would add electrical generation facilities using nuclear fusion technology to the types of projects qualifying for this sales and use tax exclusion. The bill would, on and after January 1, 2026, for an applicant that, together with its parent corporation and subsidiaries, employs 500 or more employees, prohibit the authority from approving a project unless the applicant certifies that the applicant and its subcontractors will comply with certain labor requirements. The bill would make other conforming changes. This bill would take effect immediately as a tax levy.

Text versions

Roll-call votes

State vote data last updated Oct 15, 2026, 8:04 PM.

DateVoteResultYour legislators
Sep 9, 2025
Senate		Unfinished Business SB86 McNerney et al. ConcurrencepassSet your home in California to see
Sep 8, 2025
House		SB 86 McNerney Senate Third Reading By WilsonpassSet your home in California to see
Aug 29, 2025
House		Do pass as amended.passSet your home in California to see
Jul 14, 2025
House		Do pass as amended and be re-referred to the Committee on [Appropriations]passSet your home in California to see
Jul 7, 2025
House		Do pass and be re-referred to the Committee on [Revenue and Taxation]passSet your home in California to see
Jun 4, 2025
Senate		Special Consent SB86 McNerney et al.passSet your home in California to see
May 23, 2025
Senate		Do pass as amendedpassSet your home in California to see
Apr 7, 2025
Senate		Placed on suspense filepassSet your home in California to see
Mar 26, 2025
Senate		Do pass, but first be re-referred to the Committee on [Appropriations]passSet your home in California to see

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