Newsom Approves McNerney Bill, Extends Tax Incentives for Clean-Energy Industries

A California tax-incentive program will continue to support clean-energy industries, at least through the beginning of 2028, following Gov. Gavin Newsom’s signing of Senate Bill (SB) 86 last week.

Introduced by Tri-Valley Senator Jerry McNerney, the bill extends the Sales and Use Tax Exclusion program under the California Advanced Energy and Advanced Transportation Financing Authority (CAEATFA). The program provides a sales- and use-tax exclusion for qualifying purchases within the advanced-manufacturing, advanced-transportation, alternative-source or recycled-feedstock industries.

SB 86, which will take effect Jan. 1, expands the program to also offer the same financial benefits to the commercial fusion-power industry.

“The Trump Administration is eliminating clean-energy funding nationwide,” McNerney said in a statement. “With SB 86, California will maintain its lead in the fight against climate change by continuing to incentivize green-energy projects and solidify its position as a national trendsetter in fusion energy, which has the potential to supply the nation with unlimited amounts of safe and clean power.”

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