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Business Taxes Law Guide—Revision 2025
Sales And Use Tax Law
Revenue and Taxation Code
Division 2. Other Taxes
Part 1. Sales and Use Taxes
Chapter 1. General Provisions and Definitions
Section 6010.8
Text of Section Inoperative December 31, 2027.
6010.8. "Sale" and "purchase"; transfer of title of tangible personal property constituting a project to a participating party. (a) (1) "Sale" and "purchase," do not include any lease or transfer of title of tangible personal property constituting any project to any participating party.
(2) On and after September 21, 2018, "sale" and "purchase" do not include any lease or transfer of title of tangible personal property constituting any project to any contractor for use in the performance of a construction contract for the participating party that will use that property as an integral part of the approved project.
(b) As used in this section, "project" has the meaning specified in subparagraph (B) of paragraph (8) of subdivision (a) of Section 26003 of the Public Resources Code and "participating party" has the meaning specified in subparagraph (B) of paragraph (7) of subdivision (a) of Section 26003 of the Public Resources Code.
(c) This section shall remain in effect only until January 1, 2028, and as of that date is repealed.
History—Added by Stats. 1980, Ch. 908 (AB 2324), operative January 1, 1981. Stats. 1994, Ch. 1218 (SB 1952), in effect January 1, 1995, substituted "and Advanced Transportation" for "Source" after "Energy" in the first sentence. Stats. 2012, Ch. 677 (SB 1128), in effect January 1, 2013, added subdivision letter designation (a) before first paragraph; deleted "transfer of title of tangible personal property constituting any project to the California Alternative Energy and Advanced Transportation Financing Authority by any participating party, nor any" after "not include any", deleted "by the authority" after "constituting any project", deleted "when the transfer or lease is made pursuant to Division 16 (commencing with Section 26000)" after "participating party"; created new second sentence beginning with " As used in this … Section 26003" before "of the Public", deleted "The terms "project"" after "Public Resources", substituted "has the meaning… subdivision (a) of" for "as used in this section have the same meanings as in" after "and ‘participating party’" in subdivision (a); and added subdivision (b). Stats. 2015, Ch. 788 (AB 1269), in effect January 1, 2016, added new subdivision (b) and deleted former subdivision (b) which provided, "This section shall become inoperative on July 1, 2016, and, as of January 1, 2017, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2017, deletes or extends the dates on which it becomes inoperative and is repealed." Stats. 2018, Ch. 645 (AB 1547), in effect September 21, 2018, added paragraph designation (1) and added paragraph (2) to subdivision (a); added subdivision designation (b) to former second sentence of subdivision (a); and relettered former subdivision (b) as (c). Stats. 2019, Ch. 690 (AB 1583), in effect October 10, 2019, substituted "transfer of title of tangible personal property constituting a project to a participating party" for "alternative energy, advanced transportation, and advanced manufacturing projects," in the first sentence, deleted "the operative date of the act adding this paragraph," added "September 21, 2018" to paragraph (a) subdivision (a) paragraph (2), and substituted "January 1, 2021" for "January 1, 2026" in subdivision (c). Stats. 2025, Ch. 211 (SB 86), in effect October 1, 2025, substituted "2028" for "2026" and deleted "unless a later enacted statute, that is enacted before January 1, 2026, deletes or extends that date." in subdivision (c).
Text of Section Operative January 1, 2028.
6010.8. "Sale" and "purchase"; transfer of title of tangible personal property constituting a project to a participating party. (a) "Sale" and "purchase" do not include any lease or transfer of title of tangible personal property constituting any project to any participating party. As used in this section "project" has the meaning specified in subparagraph (B) of paragraph (7) of subdivision (a) of Section 26003 of the Public Resources Code and "participating party" has the meaning specified in subparagraph (B) of paragraph (6) of subdivision (a) of Section 26003 of the Public Resources Code.
(b) This section shall become operative on January 1, 2028.
History—Added by Stats. 2012, Ch. 677 (SB 1128), operative July 1, 2016. Stats. 2015, Ch. 788 (AB 1269), in effect January 1, 2016, substituted "January 1, 2021" for "July 1, 2016" in subdivision (b). Stats. 2019, Ch. 690 (AB 1583), in effect October 10, 2019, deleted "alternative energy and advanced transportation projects," in the first sentence and substituted "January 1, 2021" for "January 1, 2026" in subdivision (b). Stats. 2025, Ch. 211 (SB 86), in effect January 1, 2026, substituted "2028" for "2026" in subdivision (b).
Note.—Section 8, of stats. 2025, Ch. 211 (SB 86) specifies:
(a) For purposes of Section 41 of the Revenue and Taxation Code, with respect to the sales and use tax exclusion provided pursuant to Section 26011.8 of the Public Resources Code and Section 6010.8 of the Revenue and Taxation Code, as amended by Sections 3 and 6, respectively, of this act, the Legislature finds and declares that the specific goals, purposes, and objectives of the sales and use tax exclusion are as follows:
(1) Creation of California-based jobs.
(2) Reduction in emissions of greenhouse gases, air and water pollution, and energy consumption.
(b) To measure whether the sales and use tax exclusion has achieved those goals, purposes, and objectives, the California Alternative Energy and Advanced Transportation Financing Authority, on or before January 31, 2027, shall prepare and submit, in accordance with Section 9795 of the Government Code, a report to the Legislature on both of the following:
(1) The net effects of the sales and use tax exclusion on jobs and economic output.
(2) The net environmental effects of the sales and use tax exclusion.
(c) This section is repealed on January 1, 2028.