Act No. 127 (H.679). Taxation and fees; renewable energy

An act relating to creating a uniform capacity tax for solar renewable energy plants

Sec. 1. Uniform capacity tax

Creates a capacity tax of $4.00 per kilowatt plant capacity for solar renewable energy plants. Exempts plants under 10 kilowatt capacity from the tax.

Sec. 2. Property tax exemption for small plants

Creates an exemption from municipal and education property taxes for real and personal property composing a solar renewable energy plant of 10 kilowatt capacity or less.

Sec. 3. Education property tax exemption for large plants

Creates an exemption from the education property tax for the building and fixtures of a solar renewable energy plant subject to the capacity tax.

Sec. 4. Prospective repeal and report

Sunsets the exemptions in Secs. 1 and 2 for plants under 10 kilowatt capacity on January 1, 2023. Requires the department of taxes, by January 15, 2021, to report to the senate committees on finance and on natural resources and energy, and the house committees on ways and means and on natural resources and energy on whether the exemptions for plants under 10 kilowatt capacity should be retained, and whether the rate of the capacity tax should be altered.

Sec. 5. Wind generation tax

Lowers the capacity threshold of plants subject to the wind generation tax under 32 V.S.A. § 5402c from five megawatts to one megawatt.

Sec. 6. Guidance on municipal taxes

Requires the department of taxes to provide from time to time guidance for municipalities on valuing solar plants subject to the capacity tax.

Effective Date: January 1, 2013