Investment Tax Credit

This tax credit is not available to homeowners—it applies only to business properties, farms, and commercial installations. If you own a business and install eligible renewable energy systems like solar, wind, geothermal, or biomass equipment, you may claim a state tax credit equal to 7.2% of your federal business energy tax credit (for systems installed by December 31, 2032), stepping down in later years.

You'll be installing systems for business customers who qualify for both federal and state investment tax credits. Vermont's 7.2% state credit (through 2032) stacks on top of the federal business energy tax credit, making renewable projects more financially attractive for your commercial, agricultural, and industrial clients. The project must be eligible for the federal credit first to claim the state incentive.

Vermont's investment tax credit is a business-focused incentive tied to federal tax credits; eligible commercial and industrial systems receive a 7.2% state-level credit through 2032, declining to 6.24% in 2033 and 5.28% in 2034 per the federal schedule. The credit is calculated as 24% of the federal business energy tax credit's Vermont-property portion for project leaders, funding renewable energy adoption in commercial, agricultural, and industrial sectors. No appropriation or funding cap is specified in DSIRE; administration occurs through state tax returns.