Investment Tax Credit
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No maximum specified.
7.2% for solar in service on or before 12/31/2019.
2.4% for geothermal electric.
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 solar-specific tax credit was amended several times (by the Vermont Energy Act of 2009 (H.B. 313, May 2009), by H.B. 781 in June 2010 and again by H.B. 56 in May 2011). The solar credit was equal to 100% of the "Vermont-property portion" of the federal business energy tax credit for solar from 2008 through 2010. In effect, this constituted a 30% state-level credit for solar during those years. As of 2012, the solar business tax credit has expired and the investment tax credit remains.
The federal business energy investment tax credit was extended in December 2015. See DSIRE's entry for this credit to learn more.
*The federal investment tax credit (ITC) for solar is 30% of expenditures. For geothermal electric systems, the ITC is 10% of expenditures. Vermont's investment tax credit is equal to 24% of the federal ITC for these technologies.