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Home/Bills/AB 856California · 2025–2026 Regular Session
Assembly BillFailedRevenue and Taxation

AB 856: Sales and Use Tax: exemptions: manufacturing.

California · Assembly · 2025–2026 Regular Session · last verified February 3, 2026

What AB 856 does, verified February 3, 2026

This bill amends the sales and use tax law to extend a partial exemption from taxes until January 1, 2031. The exemption allows for the sale of qualified tangible personal property for use in manufacturing, processing, or recycling, with a limit of $200,000,000. The bill removes a reporting requirement for the state department of tax and fee administration and provides that no reimbursement is made for lost sales and use tax revenues. The bill also makes conforming changes and takes effect immediately as a tax levy.

Bill journey
IntroducedComplete
2In CommitteeCurrent
3First Chamber FloorPending
4Second ChamberPending
5GovernorPending
6ChapteredPending
Last action: From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. (2026-02-02)Alert me
Recent actions6 total · showing 5
Feb. 02, 2026From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Jan. 31, 2026Died pursuant to Art. IV, Sec. 10(c) of the Constitution.
Apr. 07, 2025In committee: Set, first hearing. Hearing canceled at the request of author.
Mar. 13, 2025Referred to Com. on REV. & TAX.
Feb. 20, 2025From printer. May be heard in committee March 22.
Full action history, 1 earlier actionConnect Plus
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