CALSTART Praises Deal to Exempt Clean Tech Manufacturing Equipment from State Sales Tax
PASADENA, CA - CALSTART, the nation's leading clean transportation consortium, praised a deal between the California Governor and the state's legislative leaders to exempt manufacturing equipment to produce clean energy and technology products, vehicles, and fuels from the state sales tax.
PASADENA, CA - CALSTART, the nation's leading clean transportation consortium, praised a deal between the California Governor and the state's legislative leaders to exempt manufacturing equipment to produce clean energy and technology products, vehicles, and fuels from the state sales tax.
California is one of only three states that tax capital equipment used to manufacture other products. The new legislation (SB-71) exempts clean tech manufacturing equipment from the state sales tax.
Governor Schwarzenegger outlined the need for such legislation in his state-of-the state speech and was then able to negotiate a bi-partisan deal successfully with State Senate President pro Tem Darrell Steinberg and newly elected Assembly Speaker John Perez. CALSTART participated in press events with the Governor and helped organize support for the legislation from several California clean transportation technology companies.
"With the passage of this legislation, California's leaders have removed a major barrier to the growth of the state's clean energy industry. This legislation will stimulate the creation of thousands of jobs in California," said John Boesel, CALSTART's President and CEO, a statewide organization that serves as a catalyst for the clean transportation technology sector.
"Clean energy and transportation are priorities that are important to both Republicans and Democrats. We appreciate the cooperative, bipartisan effort made by Governor Schwarzenegger, President pro Tem Steinberg, and Speaker Perez to reach agreement on this policy. This is definitely a policy that will be good for the environment and the economy," said Boesel.
California has long been a national and global leader in terms of policies that have resulted in cleaner fuels and vehicles that benefit the environment and public health. However, the sales tax on manufacturing equipment often served as a significant disincentive for firms to actually produce products in-state. Unlike other factors such as obtaining permits and work rules, the sales tax on manufacturing equipment was a clear and easy-to-quantify hindrance for doing business in California.
"California has taken the right policy steps to clean up cars, trucks, and buses. This legislation is the right step to give California a fighting chance at making sure the next generation of clean vehicles and fuels are built in the state," said Boesel.
More Green Fleet

Fleet Forward Conference Introduces One-Day Passes for 2026
New one-day registration gives fleet professionals the flexibility to attend Tuesday, Wednesday, or Thursday, with passes available for $199 through Sept. 18.
Read More →
CALSTART Rebrands as Catalyst Mobility, Will Combine with Forth in 2027
CALSTART has rebranded as Catalyst Mobility and will combine with Forth at the start of 2027. The new organization said it is poised to become one of the world's largest, strongest, and most impactful clean transportation nonprofits.
Read More →
Electric Truck and Charging Programs to Boost Sustainability at NY & NJ Ports
Together, the Port Authority of New York and New Jersey and CALSTART will electrify drayage and terminal operations serving the East Coast’s busiest container port. A pair of incentive programs totaling $45 million has launched to accelerate adoption of zero-emission drayage trucks and terminal tractors.
Read More →
Xos Hub Surpasses One Gigawatt-Hour of Energy Delivered in the Field
A single Xos Hub has surpassed one gigawatt-hour of energy across more than 33,600 charging sessions in the field, demonstrating performance that supports Xos' expansion across new products and markets.
Read More →
Carrier Transicold Launches All-Electric Vector 8200 TRU for Diesel-Free On-Site Cold Storage
Carrier Transicold’s first engineless multi-temperature TRU helps fresh- and frozen-food fleets add supplemental cold storage capacity during seasonal peaks.
Read More →
Narro Trucks Introduces Electric Utility Vehicle
Narro Trucks officially launched its operations on Aug. 20 and hosted a ride and drive to showcase its electric truck, which will be produced in Virginia.
Read More →
Samsung SDI Takes Full Control of GM Battery JV as Indiana Plant Pivots to Energy Storage
Samsung SDI is taking full control of its Indiana battery plant with GM, marking a major shift from the EV-focused joint venture Charged Fleet first covered in 2023.
Read More →
NWSA Taps CALSTART to Administer Zero-Emission Drayage Assistance Program
CALSTART will provide free technical assistance services to drayage fleets serving the Ports of Seattle and Tacoma and looking to transition to cleaner technologies and help decarbonize freight hubs.
Read More →
EV Fleet Reality Check: What Operators Wish They Knew Before Electrifying Their Work Vans
Electric work truck upfits bring new compatibility questions. Learn how parts availability, OEM guidance, power demands, and route planning can affect fleet performance.
Read More →
Peterbilt Expands Sourcewell Partnership with Electric Vehicle Lineup
Peterbilt Motors Company’s cooperative purchasing agreement with Sourcewell and its Canadian partner, Canoe Procurement Group, now includes including Peterbilt's battery-electric vehicle lineup.
Read More →

