Bill Commons

CA SB 86

enacted

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

California · 2025-2026 Regular Session · upper

Quick answers

Did CA SB 86 pass?

Yes. CA SB 86 has been enacted into law as of 2025-10-01. Latest recorded action (2025-10-01): Chaptered by Secretary of State. Chapter 211, Statutes of 2025.

What is CA SB 86 about?

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.

Who sponsors CA SB 86?

McNerney is the primary sponsor of CA SB 86, joined by 5 cosponsors.

Description

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.

Introduced
2025-01-21
Latest action
2025-10-01 — Chaptered by Secretary of State. Chapter 211, Statutes of 2025.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • McNerneyauthor
  • Ashbycoauthor
  • Caballerocoauthor
  • Graysoncoauthor
  • Daviescoauthor
  • Jacksoncoauthor

Committees

Not provided by source.

Action timeline

  1. 2025-01-21

    Introduced. Read first time. To Com. on RLS. for assignment. To print.

    introduction,reading-1,referral-committee

  2. 2025-01-22

    From printer. May be acted upon on or after February 21.

  3. 2025-01-29

    Referred to Com. on REV. & TAX.

    referral-committee

  4. 2025-03-18

    Set for hearing March 26.

  5. 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

  6. 2025-03-28

    Set for hearing April 7.

  7. 2025-04-07

    April 7 hearing: Placed on APPR. suspense file.

  8. 2025-05-16

    Set for hearing May 23.

  9. 2025-05-23

    From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1191.) (May 23).

    amendment-passage,committee-passage,committee-passage-favorable

  10. 2025-05-23

    Read second time and amended. Ordered to second reading.

    amendment-passage,reading-1,reading-2

  11. 2025-05-27

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  12. 2025-06-02

    Ordered to special consent calendar.

  13. 2025-06-04

    Read third time. Passed. (Ayes 39. Noes 0. Page 1521.) Ordered to the Assembly.

    passage,reading-1,reading-3

  14. 2025-06-05

    In Assembly. Read first time. Held at Desk.

    reading-1

  15. 2025-06-16

    Referred to Coms. on REV. & TAX. and TRANS.

    referral-committee

  16. 2025-06-19

    Re-referred to Coms. on TRANS. and REV. & TAX. pursuant to Assembly Rule 96.

    referral-committee

  17. 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

  18. 2025-07-15

    July 14 set for first hearing. Placed on REV. & TAX. suspense file.

  19. 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,referral-committee

  20. 2025-07-16

    Read second time and amended. Re-referred to Com. on APPR.

    amendment-passage,reading-1,reading-2,referral-committee

  21. 2025-08-20

    August 20 set for first hearing. Placed on APPR. suspense file.

  22. 2025-08-29

    From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).

    amendment-passage,committee-passage,committee-passage-favorable

  23. 2025-09-02

    Read second time and amended. Ordered to second reading.

    amendment-passage,reading-1,reading-2

  24. 2025-09-03

    Read third time and amended.

    amendment-passage,reading-1,reading-3

  25. 2025-09-03

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  26. 2025-09-03

    Ordered to third reading.

    reading-1,reading-3

  27. 2025-09-08

    Read third time. Passed. (Ayes 76. Noes 0. Page 3003.) Ordered to the Senate.

    passage,reading-1,reading-3

  28. 2025-09-08

    In Senate. Concurrence in Assembly amendments pending.

  29. 2025-09-09

    Assembly amendments concurred in. (Ayes 40. Noes 0. Page 2710.) Ordered to engrossing and enrolling.

    amendment-passage,committee-passage,committee-passage-favorable

  30. 2025-09-16

    Enrolled and presented to the Governor at 3 p.m.

    executive-receipt

  31. 2025-10-01

    Approved by the Governor.

    executive-signature

  32. 2025-10-01

    Chaptered by Secretary of State. Chapter 211, Statutes of 2025.

    became-law

Versions

  • 01/21/25 - Introduced — 2025-01-21Compare
  • 05/23/25 - Amended Senate — 2025-05-23Compare
  • 07/16/25 - Amended Assembly — 2025-07-16Compare
  • 09/02/25 - Amended Assembly — 2025-09-02Compare
  • 09/03/25 - Amended Assembly — 2025-09-03Compare
  • 09/12/25 - Enrolled — 2025-09-12Compare
  • 10/01/25 - Chaptered — 2025-10-01Compare
  • SB86Compare
  • (document, no version)Compare

Documents

Votes

  • Do pass, but first be re-referred to the Committee on [Appropriations]

    2025-03-26 · pass · 5-0

    Member-level votes (5)
    • Ashby: yes
    • Grayson: yes
    • McNerney: yes
    • Umberg: yes
    • Valladares: yes

  • Placed on suspense file

    2025-04-07 · pass · 7-0

    Member-level votes (7)
    • Richardson: yes
    • Cabaldon: yes
    • Grayson: yes
    • Caballero: yes
    • Seyarto: yes
    • Wahab: yes
    • Dahle: yes

  • Do pass as amended

    2025-05-23 · pass · 6-0

    Member-level votes (7)
    • Caballero: yes
    • Seyarto: yes
    • Wahab: yes
    • Cabaldon: yes
    • Richardson: yes
    • Grayson: yes
    • Dahle: other

  • Special Consent SB86 McNerney et al.

    2025-06-04 · pass · 39-0

    Member-level votes (40)
    • Durazo: yes
    • Menjivar: yes
    • Limón: yes
    • Rubio: yes
    • Pérez: yes
    • Padilla: yes
    • Richardson: yes
    • Smallwood-Cuevas: yes
    • Weber Pierson: yes
    • Wahab: yes
    • Seyarto: yes
    • Umberg: yes
    • Hurtado: yes
    • Grove: yes
    • Niello: yes
    • Wiener: yes
    • Cortese: yes
    • Allen: yes
    • Cervantes: yes
    • Jones: yes
    • McGuire: yes
    • Stern: yes
    • Arreguín: yes
    • Blakespear: yes
    • Alvarado-Gil: yes
    • Laird: yes
    • Archuleta: yes
    • McNerney: yes
    • Cabaldon: yes
    • Gonzalez: yes
    • Caballero: yes
    • Valladares: yes
    • Strickland: yes
    • Grayson: yes
    • Becker: yes
    • Ochoa Bogh: yes
    • Choi: yes
    • Ashby: yes
    • Dahle: yes
    • Reyes: other

  • Do pass and be re-referred to the Committee on [Revenue and Taxation]

    2025-07-07 · pass · 16-0

    Member-level votes (16)
    • Davies: yes
    • Bennett: yes
    • Rogers: yes
    • Lackey: yes
    • Macedo: yes
    • Papan: yes
    • Caloza: yes
    • Carrillo: yes
    • Ward: yes
    • Hoover: yes
    • Lowenthal: yes
    • Ransom: yes
    • Ahrens: yes
    • Hart: yes
    • Jackson: yes
    • Wilson: yes

  • Do pass as amended and be re-referred to the Committee on [Appropriations]

    2025-07-14 · pass · 7-0

    Member-level votes (7)
    • Gipson: yes
    • McKinnor: yes
    • Ta: yes
    • Quirk-Silva: yes
    • Bains: yes
    • DeMaio: yes
    • Carrillo: yes

  • Do pass as amended.

    2025-08-29 · pass · 11-0

    Member-level votes (15)
    • Elhawary: yes
    • Pellerin: yes
    • Fong: yes
    • Pacheco: yes
    • Calderon: yes
    • Arambula: yes
    • Mark González: yes
    • Wicks: yes
    • Caloza: yes
    • Ahrens: yes
    • Solache: yes
    • Sanchez: other
    • Ta: other
    • Tangipa: other
    • Dixon: other

  • SB 86 McNerney Senate Third Reading By Wilson

    2025-09-08 · pass · 76-0

    Member-level votes (80)
    • Ahrens: yes
    • Johnson: yes
    • Dixon: yes
    • Mark González: yes
    • Quirk-Silva: yes
    • Gipson: yes
    • Rogers: yes
    • Addis: yes
    • Ward: yes
    • Haney: yes
    • Hart: yes
    • Fong: yes
    • Calderon: yes
    • Elhawary: yes
    • Wilson: yes
    • Carrillo: yes
    • Bains: yes
    • Ransom: yes
    • Soria: yes
    • Michelle Rodriguez: yes
    • Berman: yes
    • Valencia: yes
    • Wicks: yes
    • Celeste Rodriguez: yes
    • Arambula: yes
    • Connolly: yes
    • Schultz: yes
    • Bauer-Kahan: yes
    • Bennett: yes
    • Papan: yes
    • Schiavo: yes
    • Bonta: yes
    • Ávila Farías: yes
    • Aguiar-Curry: yes
    • Jeff Gonzalez: yes
    • Pacheco: yes
    • Boerner: yes
    • Alvarez: yes
    • Castillo: yes
    • Alanis: yes
    • Wallis: yes
    • Patterson: yes
    • Stefani: yes
    • Ta: yes
    • Caloza: yes
    • Hoover: yes
    • Sharp-Collins: yes
    • Ortega: yes
    • Solache: yes
    • Lowenthal: yes
    • Blanca Rubio: yes
    • Jackson: yes
    • Bryan: yes
    • Gallagher: yes
    • Petrie-Norris: yes
    • Harabedian: yes
    • Gabriel: yes
    • Ellis: yes
    • Macedo: yes
    • Davies: yes
    • Zbur: yes
    • DeMaio: yes
    • Pellerin: yes
    • Hadwick: yes
    • Krell: yes
    • Irwin: yes
    • Tangipa: yes
    • Lackey: yes
    • Ramos: yes
    • Patel: yes
    • Kalra: yes
    • Sanchez: yes
    • Rivas: yes
    • Chen: yes
    • Flora: yes
    • Garcia: yes
    • Lee: other
    • McKinnor: other
    • Muratsuchi: other
    • Nguyen: other

  • Unfinished Business SB86 McNerney et al. Concurrence

    2025-09-09 · pass · 40-0

    Member-level votes (40)
    • Richardson: yes
    • Menjivar: yes
    • Cortese: yes
    • Jones: yes
    • Weber Pierson: yes
    • McNerney: yes
    • Seyarto: yes
    • Stern: yes
    • Smallwood-Cuevas: yes
    • Becker: yes
    • Alvarado-Gil: yes
    • McGuire: yes
    • Valladares: yes
    • Cervantes: yes
    • Grove: yes
    • Hurtado: yes
    • Cabaldon: yes
    • Rubio: yes
    • Durazo: yes
    • Laird: yes
    • Padilla: yes
    • Dahle: yes
    • Limón: yes
    • Strickland: yes
    • Pérez: yes
    • Reyes: yes
    • Archuleta: yes
    • Niello: yes
    • Ochoa Bogh: yes
    • Wiener: yes
    • Ashby: yes
    • Arreguín: yes
    • Grayson: yes
    • Allen: yes
    • Gonzalez: yes
    • Caballero: yes
    • Choi: yes
    • Wahab: yes
    • Umberg: yes
    • Blakespear: yes

Related bills

No related bills recorded for this bill.

Official source

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260SB86

Attribution

Data from openstates_bulk_csv, retrieved 2026-07-24T01:34:27.960412Z

Inspect retained evidence for changes recorded after evidence tracking began:

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