Local Option - Property Tax Exemption

Last updated: July 01, 2020

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Vermont
Incentive Type:Property Tax Incentive
Web Site:http://tax.vermont.gov/municipal-officials/solar-valuation/everything-you-need-to-know-about-solar
Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Photovoltaics, Wind (All), Biomass, Hydroelectric, Combined Heat & Power, Landfill Gas, Wind (Small), Hydroelectric (Small), Anaerobic Digestion, Fuel Cells using Renewable Fuels

Authorities

Name:32 V.S.A. § 3845
Date Enacted:1975 (subsequently amended)

Summary

Local Option - Property Tax Exemption

Vermont allows municipalities the option of offering an exemption from the municipal real and personal property taxes for certain renewable energy systems (Note: state property taxes would still apply). Eligible systems include, but are not limited to "windmills, facilities for the collection of solar energy or the conversion of organic matter to methane, net-metered systems ... and all component parts thereof including land upon which the facility is located, not to exceed one-half acre." The adoption of this exemption varies by municipality, but the exemption generally applies to the total value of the qualifying renewable energy system and can be applied to residential, commercial, and industrial real and personal property.

Note: Solar photovoltaic systems under 50 kW that are net-metered or are not connected to the grid and only provide power to the properties on which they are located are already currently exempt from municipal property taxes under 32 V.S.A. § 3802(17) (see Uniform Capacity Tax and Exemption for Solar).

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