Renewable Energy Systems Sales Tax Exemption (Vermont)
Last modified on December 17, 2014.
Financial Incentive Program
|Name||Renewable Energy Systems Sales Tax Exemption|
|Incentive Type||Sales Tax Incentive|
|Applicable Sector||Commercial, Residential, General Public/Consumer, Agricultural|
|Eligible Technologies||Solar Water Heat, Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, CHP/Cogeneration, Anaerobic Digestion, Fuel Cells using Renewable Fuels|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||100% of sales tax for purchase|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
Vermont's sales tax exemption for renewable-energy systems, originally enacted as part of the Miscellaneous Tax Reduction Act of 1999 (H. 0548), initially applied only to net-metered systems. The exemption now generally applies to systems up to 250 kilowatts (kW) in capacity that generate electricity using eligible "renewable energy" resources (as defined under 30 V.S.A. § 8002), to micro-combined heat and power (CHP) systems up to 20 kW, and to solar water-heating systems. The exemption is available for grid-tied systems and off-grid systems alike. Vermont's sales tax rate is 6%.
"Renewable energy" is defined under 30 V.S.A. § 8002 as "energy produced using a technology that relies on a resource that is being consumed at a harvest rate at or below its natural regeneration rate." Biogas from sewage-treatment plants and landfills, and anaerobic digestion of agricultural products, byproducts and wastes are explicitly included. (The term "renewable energy" explicitly excludes solid waste that is not agricultural or silvicultural, as well as nuclear fuel, coal, oil, propane and natural gas.)
|Contact Name||Information Sales and Use Tax|
|Department||Vermont Department of Taxes|
|Address||133 State Street|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||32 V.S.A. § 9741(46)|
|Date Enacted||1999 (subsequently amended)|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.