CA SB86

Extends the California Alternative Energy and Advanced Transportation Financing Authority's authorization to provide sales and use tax exclusions for qualifying clean energy and advanced manufacturing projects from January 1, 2026 to January 1, 2028

Adds electrical generation facilities using nuclear fusion technology to the list of projects eligible for the sales and use tax exclusion

Requires applicants with 500 or more employees (including parent corporations and subsidiaries) to certify compliance with labor requirements starting January 1, 2026, including providing competitive wages and benefits, investing in workforce training programs, and adopting worker voice mechanisms

Maintains the annual cap of $100 million in sales and use tax exclusions for qualifying projects, with a special provision for 2022-2024 allowing up to $115 million (including $15 million reserved for lithium-related projects)

Requires the California Alternative Energy and Advanced Transportation Financing Authority to submit a report to the Legislature by January 31, 2027 on the job creation, economic output, and environmental effects of the tax exclusion program