The California Department of Tax and Fee Administration has amended their Code of Regulations to expand their partial sales and use tax exemption for research and development to include the production, storage, and distribution of electric power. “Qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production, storage, or distribution of electric power” is now partially exempt from sales and use tax. California also updated the Partial Exemption Certificate for Manufacturing and Research & Development (CDTFA-230-M) to reflect the addition of Electric Power Equipment and a checkbox for qualified tangible personal property used primarily for the generation or production, storage, or distribution of electric power. At time of this notice, CDTFA had not yet uploaded the revised form to their website and suggests that, if applicable, the person issuing the exemption certificate add a statement on the certificate that they are “primarily engaged in the generation or production, or storage and distribution, of electric power as described in NAICS codes 221111 to 221118, or 221122.” The partial exemption rate of 3.9375% applies to the period January 1, 2017 through June 30, 2030. (California Code of Regulations, Title 18, Section 1525.4, January 2022)