Vermont offers an investment tax credit for installations of renewable energy equipment on business properties, in order to encourage investment in rehabilitation and qualifying renewable energy projects. Vermont created this credit starting for Tax Year 2002 and provided an additional incentive for solar investments for Tax Year 2008 (via S.B. 209). The project must be eligible for and receive the federal tax credit to receive the state credit. The credit is equal to 24% of the "Vermont-property portion" of the federal business energy tax credit for project leaders.
For qualifying renewable energy projects the credit is calculated to be a 7.2% state-level credit for systems placed in service on or before 12/31/2032. This credit will step down (according to the federal tax credit's step-down schedule) to 6.24% for systems placed in service by 12/31/2033, then down to 5.28% for systems placed in service by 12/31/2034.
| Implementing Sector: | State |
| Category: | Financial Incentive |
| State: | Vermont |
| Incentive Type: | Personal Tax Credit |
| Web Site: | http://tax.vermont.gov/business-and-corp/corp-and-business-income-taxes/tax-credits |
| Administrator: | Vermont Department of Taxes |
| Start Date: | 01/01/2009 |
| Eligible Renewable/Other Technologies: |
|
| Incentive Amount: |
7.2% for systems placed in service by 12/31/2032 6.24% for systems placed in service by 12/31/2033 5.28% for systems placed in service by 12/31/2034 |
| Maximum Incentive: | No maximum specified. |
| Equipment Requirements: | All equipment must meet the same requirements as the Federal Investment Tax Credit |
| Technologies: | Solar Water Heat, Solar Space Heat, Geothermal Electric, Solar Thermal Electric, Solar Thermal Process Heat, Solar Photovoltaics, Geothermal Heat Pumps, Combined Heat & Power, Wind (Small), Fuel Cells using Renewable Fuels, Microturbines, Lithium-ion |
| Sectors: | Commercial, Industrial, Agricultural |
| Parameters: | The incentive is 7.20 % |
| Name: | 32 V.S.A. § 5822 (d) |
| Date Enacted: | 3/19/2008 (subsequently amended) |
| Effective Date: | 07/01/2008 |
| Expiration Date: | 12/31/2016 |
| Name: | Vermont Department of Taxes |
| Organization: | Business Tax Section |
| Address: |
133 State St. Montpelier VT 05602 |
| Phone: | (802) 828-2551 |
| Email: | tax.business@vermont.gov |
This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.
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