Local Option - Property Tax Exemption

VT Property Tax Incentive commercial industrial residential agricultural

Program Details

Program ID: 45
Last Updated: 5/22/2024

Eligibility

Eligible Sectors

commercial industrial residential agricultural

Eligible 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 lithium-ion

Program Summary

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, but excluding land upon with the facility is located." 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).

Contact & Resources

Additional Resources

http://tax.vermont.gov/municipal-officials/solar-valuation/everything-you-need-to-know-about-solar

Please verify current program details with the administering agency before making any financial decisions.