Assembly BillFailedRevenue and Taxation
AB 856: Sales and Use Tax: exemptions: manufacturing.
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
Author and sponsors
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| Feb. 02, 2026 | From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. |
| Jan. 31, 2026 | Died pursuant to Art. IV, Sec. 10(c) of the Constitution. |
| Apr. 07, 2025 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Mar. 13, 2025 | Referred to Com. on REV. & TAX. |
| Feb. 20, 2025 | From printer. May be heard in committee March 22. |