CA AB2525

Exempts from state sales and use taxes purchases of tangible personal property used in manufacturing clean energy technology, effective January 1, 2011.

Applies to qualified persons engaged in manufacturing operations classified under specific North American Industry Classification System codes, and their affiliates in the same unitary group.

Requires purchasers to obtain an exemption certificate from California Business Investment Services and meet conditions including purchasing/developing a first, second, or third facility of its kind in California and creating jobs.

Exemption does not apply to local sales and use taxes, transactions and use taxes, or state taxes for funding the Local Revenue Fund, Local Public Safety Fund, or Fiscal Recovery Fund.

Exemption becomes void if property is removed from California, converted to non-exempt use, or improperly used within one year of purchase; purchaser then owes retroactive sales tax.