2013 Vermont Statutes
Title 32 Taxation and Finance
Chapter 151 INCOME TAXES
§ 5930z Solar energy tax credit

5930z. Solar energy tax credit

(a) A taxpayer of this State shall be eligible for the business solar energy tax credit against the tax imposed under section 5822 or 5832 of this title in an amount equal to 100 percent of the Vermont-property portion of the business solar energy investment tax credit component of the federal investment tax credit allowed against the taxpayer's federal income tax for the taxable year under 26 U.S.C. 48; provided, however, that a taxpayer who receives any grants or similar funding from the Clean Energy Development Fund created under 10 V.S.A. 6523 is not eligible to claim the business solar energy tax credit for that project; and provided further, that for investments made on or after October 1, 2009, the tax credit will only apply to project costs not covered by any grants or similar funding from any public or private program that assists in providing capital investment for a renewable energy project.

(b) Any taxpayer who has received a credit under subsection (a) of this section in any prior year shall increase its personal or corporate income tax under this chapter by the amount of the Vermont-property portion of the business solar energy investment tax credit component of the federal investment tax credit recapture for the taxable year.

(c) The Clean Energy Development Board (the Board) established pursuant to 10 V.S.A. 6523 shall certify to the Department no more than $9,400,000.00 of eligible solar energy tax credits. The Board shall set aside a portion of this amount for the systems described in subdivision (2) of this subsection. Credits shall be certified only if one of the two following criteria is met:

(1) The investment for which the solar energy tax credit is claimed is made after January 1, 2010, and:

(A) The investment pertains to a solar energy plant that has a plant capacity, as defined in 30 V.S.A. 8002(15), of 2.2 MW or less;

(B) On or before July 15, 2010, the solar energy plant owner filed a complete petition with the Public Service Board for a certificate of public good under 30 V.S.A. 248;

(C) On or before September 1, 2011, construction on the solar energy plant is complete and the plant is commissioned or is ready to be commissioned within the meaning of 30 V.S.A. 8002(2); and

(D) By July 15, 2010, the taxpayer has provided to the Clean Energy Development Board on a form prescribed by the Board information necessary for the Fund to determine the taxpayer's eligibility for the credit; or

(2)(A) The investment is made after January 1, 2010, and before December 31, 2010, and pertains to a system that constitutes energy property as defined in 26 U.S.C. 48(a)(3)(A)(i) and that does not require a certificate of public good under 30 V.S.A. 248, or pertains to a net metering system as defined in 30 V.S.A. 219a(a)(3), provided that the system is of no more than 150 kilowatts (AC) capacity; and

(B) By December 15, 2010, the taxpayer has provided to the Clean Energy Development Board on a form prescribed by the Board information necessary for the Fund to determine the taxpayer's eligibility for the credit.

(d) The final amount of any solar energy tax credit certified under this section shall not exceed the amount awarded to the taxpayer under 26 U.S.C. 48.

(e) Any unused solar energy tax credit may be carried forward for no more than five succeeding tax years following the first year in which the solar energy tax credit is claimed.

(f) In lieu of a solar energy tax credit certified by the Board under this section, a taxpayer may in accordance with this subsection convert such a credit into a grant to the taxpayer from the Clean Energy Development Fund established under 10 V.S.A. 6523.

(1) To qualify for a grant-in-lieu-of-credit under this subsection, the taxpayer shall comply with the provisions of this subsection and subdivision (c)(1) (solar plant of 2.2 MW or less) or (2) (solar plant of 150 kW or less) of this section. However, in the case of a taxpayer who complies with the provisions of this subsection and of subdivision (c)(1) of this section except for subdivision (c)(1)(C) (commissioning by Sep. 1, 2011), the taxpayer may qualify for such a grant if, by September 1, 2011, construction begins on the plant in accordance with Sec. IV.C (beginning of construction) of "Payments for Specified Energy Property in Lieu of Tax Credits under the American Recovery and Reinvestment Act of 2009" issued by the U.S. Department of the Treasury, Office of the Fiscal Assistant Secretary, as revised April 2011.

(2) The dollar amount of a grant-in-lieu-of-credit under this subsection shall be the lesser of the following:

(A) 50 percent of the dollar amount of the credit as contained in the certification issued by the Board to the taxpayer.

(B) 15 percent of the actual costs of the plant.

(3) No later than 30 days after the effective date of this subdivision (2), the Clean Energy Development Fund shall provide notice of this option to obtain a grant-in-lieu-of-credit to all taxpayers for which the Clean Energy Development Board has certified tax credits under this section.

(4) On or before August 1, 2011, a taxpayer to which the Board has issued a certification of a solar energy tax credit under this section shall submit to the Fund the taxpayer's request, if any, to obtain a grant-in-lieu-of-credit under this subsection.

(5) To a taxpayer making a timely request under subdivision (4) of this subsection, a grant-in-lieu-of-credit shall be paid from the Clean Energy Development Fund within 30 days of:

(A) The date on which the taxpayer provides proof to the Clean Energy Development Fund that the plant for which the taxpayer seeks a grant-in-lieu-of-credit under this subsection has received from the U.S. Department of the Treasury, pursuant to 26 U.S.C. 46 and 48, a grant in lieu of the federal investment tax credit and proof of the dollar amount of such federal grant; or

(B) If the taxpayer has not received a grant from the U.S. Department of the Treasury described in subdivision (5)(A) of this subsection, the date on which the taxpayer provides to the Clean Energy Development Fund proof that the solar energy plant for which the taxpayer seeks a grant-in-lieu-of-credit under this subsection has been commissioned and proof of the plant's actual costs.

(g) On a regular basis, the Department shall notify the House and Senate Committees on Natural Resources and Energy of solar energy tax credits claimed pursuant to this section, and the Board shall cause to be transferred from the Clean Energy Development Fund to the General Fund an amount equal to the amount of solar energy tax credits as and when the credits are claimed.

(h) The Clean Energy Development Board and the Department shall collaborate in implementing the certification of credits under this section. (Added 2007, No. 92 (Adj. Sess.), 28; amended 2009, No. 45, 9a; 2009, No. 54, 98; 2009, No. 159 (Adj. Sess.), 11; 2011, No. 47, 20h, eff. May 25, 2011; 2011, No. 139 (Adj. Sess.), 36, eff. May 14, 2012.)