Vermont, Alternative Energy Plants

H.B. 679 makes changes to the taxation of renewable energy producing plants. Effective January 1, 2013, any renewable energy plant in Vermont commissioned to generate solar power will be taxed at $4 per kW plant capacity. The tax is paid to the Department of Taxes, and payment and the return are due April 15 of each year. Small renewable solar energy plants, with a capacity equal to or less than 10kW, are exempt. The real and personal property of small plants is also exempt from Vermont property tax, but will remain subject to the education property tax applied to nonresidential properties. However, the small facilities exemptions are scheduled to be repealed on January 1, 2023. Also effective January 1, 2013, the threshold for wind-powered electric generating facilities to qualify for the alternative education property tax rate will decrease from five megawatts to one megawatt. Lastly, the Department is charged with providing municipalities methods to determine the fair market value of the alternative energy plants for municipal tax purposes.