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Client Alert

California Establishes Tax Break for Clean Tech Manufacturing Companies

March 30, 2010

Sanjay Ranchod

On March 24, 2010, California Governor Schwarzenegger signed legislation to enable solar, wind, and other clean technology companies to exclude their purchases of manufacturing equipment from the state sales tax. Under the bill, SB 71, the sales tax exemption takes effect immediately and will continue for ten years. As discussed in this StayCurrent, participation in the development of SB 71s implementing regulations will be key to ensuring eligibility and obtaining priority for the exemption.

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