{"schema_version":1,"layer":"incentives","reviewed_on":"2026-10-26","coverage_note":"Selected state program requirements and a dated operator report. Eligibility, commitments, operator reports and independently verified outcomes have different meanings. No cost per job is calculated.","items":[{"id":"incentive-ca-partial-exemption-boundary-20261025","kind":"incentive_program","state_codes":["ca"],"subject":"California general partial tax exemption and qualification boundaries","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified.","fields":{"ca_partial_basis":{"value":"Regulation1525.4 provides a general partial exemption for qualified property and qualified persons in specified manufacturing, research and electric power activities. It does not establish a dedicated data center exemption or individual entitlement.","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"status":{"value":"enacted","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"ca_rate_boundary":{"value":"Sectiona specifies3.9375percent partial exemption January1,2017 through June30,2030. Listed local and other taxes remain outside that exemption; this is not a full sales tax exemption.","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"ca_qualification_boundary":{"value":"Qualified person and qualifying use are separate requirements. The listing of computers and data processing equipment concerns operation or control of qualified machinery; buying servers alone does not establish qualification. Legal entity or establishment tests and exclusions apply.","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"ca_purchase_cap":{"value":"Sectiond limits qualifying purchases to200million dollars per calendar year, including applicable contractor purchases and combined report aggregation. This is a purchase ceiling, not a200million dollar benefit or minimum investment.","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"ca_certificate_boundary":{"value":"Sectionc requires a timely proper partial exemption certificate. Purchaser expectations do not waive qualification; failure to qualify can cause sales tax and interest liability. Blanket certificates must distinguish nonqualifying purchases.","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"ca_use_boundary":{"value":"Sectiond excludes property removed from California, converted to nonqualifying use or used in a nonqualifying manner within one year of purchase. No individual compliance determination reviewed.","source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified."},"actual_benefit":{"value":null,"source_ids":["ca-manufacturing-partial-exemption-20261025"],"locator":"Regulation1525.4 a,b10,b11,c,d","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified.","unknown_reason":"No individual data center qualifying classification, certificate or actual tax benefit reviewed."}}}],"sources":{"ca-manufacturing-partial-exemption-20261025":{"url":"https://cdtfa.ca.gov/lawguides/vol1/sutr/1525-4.html","title":"California general partial exemption regulation1525.4","publisher":"California Department of Tax and Fee Administration","published_on":null,"date_note":"Published regulation text checked October25,2026; check date is not enactment date.","scope":"Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified.","checked_at":"2026-10-25T21:39:12.001900+00:00","sha256":"86d9c8abdb14d2a476fa5d6ca01801d7fb8089c5df2ca84cbb451fa12c0c587b","tier":"A","establishes_status":["enacted"]}},"details":[{"id":"incentive-ca-partial-exemption-boundary-20261025","html":"

California general partial tax exemption and qualification boundaries

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified.

Ca partial basis
Regulation1525.4 provides a general partial exemption for qualified property and qualified persons in specified manufacturing, research and electric power activities. It does not establish a dedicated data center exemption or individual entitlement.California Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Status
enactedCalifornia Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Ca rate boundary
Sectiona specifies3.9375percent partial exemption January1,2017 through June30,2030. Listed local and other taxes remain outside that exemption; this is not a full sales tax exemption.California Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Ca qualification boundary
Qualified person and qualifying use are separate requirements. The listing of computers and data processing equipment concerns operation or control of qualified machinery; buying servers alone does not establish qualification. Legal entity or establishment tests and exclusions apply.California Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Ca purchase cap
Sectiond limits qualifying purchases to200million dollars per calendar year, including applicable contractor purchases and combined report aggregation. This is a purchase ceiling, not a200million dollar benefit or minimum investment.California Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Ca certificate boundary
Sectionc requires a timely proper partial exemption certificate. Purchaser expectations do not waive qualification; failure to qualify can cause sales tax and interest liability. Blanket certificates must distinguish nonqualifying purchases.California Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Ca use boundary
Sectiond excludes property removed from California, converted to nonqualifying use or used in a nonqualifying manner within one year of purchase. No individual compliance determination reviewed.California Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

Actual benefit
Not establishedCalifornia Department of Tax and Fee Administration. Source: Publication date not stated. Checked: October 25, 2026.

Regulation1525.4 sections a,b10,b11,c,d reviewed. General partial exemption framework; later amendments, other provisions, individual data center classification and actual claims not verified. Locator: Regulation1525.4 a,b10,b11,c,d.

"}]}