Law & Order

California Introduces Manufacturing Equipment Sales Tax Exemption Legislation

By SEMA Washington, D.C., Staff

California Assembly Member Tim Grayson (D-Concord) introduced SEMA-supported legislation (AB 1951) that would create the California Manufacturing Attraction and Development Exemption (CA MADE). If passed, the CA MADE exemption would eliminate the sales tax on most manufacturing equipment purchases. SEMA members are encouraged to register their support for the bill by clicking here.

If enacted, California would join 38 other states that currently have full exemptions on manufacturing equipment from sales and use tax. This exemption would change the current, narrowly applied exemption, and focuses on improving cost competitiveness to spur investment in California. Accounting for both local and state taxes, California’s ranks among the highest tax rates in the country.

Assembly Member Grayson is a member of the SEMA State Automotive Enthusiast Leadership Caucus and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition to being a lawmaker, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs.

For more information, please contact Christian Robinson at