Governor Newsom Signs SB 302: A Win for Clean Energy Development in California

CESA is pleased to share that Governor Gavin Newsom has signed Senate Bill 302 into law. This legislation brings California’s tax code into alignment with the federal Inflation Reduction Act (IRA), unlocking access to time-sensitive federal tax benefits for renewable and energy storage projects across the state.

By conforming state tax treatment with key IRA provisions—specifically by excluding clean energy credits from state taxable income—SB 302 removes critical barriers that previously limited project developers and investors from fully capitalizing on available federal incentives. This change is expected to accelerate clean energy deployment, improve project financing, and strengthen California’s leadership in decarbonization and grid resilience.

Read the full Governor’s Office Legislative Update: https://www.gov.ca.gov/2025/10/01/governor-newsom-issues-legislative-update-10-1-25/

CESA applauds the passage of SB 302 and will continue to advocate for policies that expand market access, enhance investment certainty, and advance energy storage adoption statewide.