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Last Updated February 17, 2024

Program Overview

Category:

Financial Incentive

State:

Vermont

Incentive Type:

Personal Tax Credit

Administrator:

Vermont Department of Taxes

Start Date:

01/01/2009

Expiration Date:

Varies by technology

Web Site:

Applicable Sectors:

Commercial, Industrial, Agricultural

Eligible Renewable/Other 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

Summary

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.