S.87

Introduced by   Senator Illuzzi of Essex-Orleans County

Referred to Committee on

Date:

Subject:  Taxation; income taxes; renewable energy systems credit

Statement of purpose:  This bill proposes to establish an income tax credit for 40 percent of the cost of installing a renewable energy system using solar or wind power.

AN ACT RELATING TO INCOME TAX CREDIT FOR RENEWABLE ENERGY SYSTEMS

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  32 V.S.A. § 5930w is added to read:

§ 5930w.  RENEWABLE ENERGY SYSTEMS

(a)  A taxpayer of this state shall be eligible for a credit against an income tax imposed under this title in the amount of 40 percent of the taxpayer’s qualified renewable energy system expenditures in the taxable year.   If the taxpayer is a partnership, limited liability company, or S corporation, the credit amount under this section shall be allocated ratably among the owners of the entity.  Unused credit may be carried forward up to five years.

(b)  In this section, “qualified renewable energy system expenditures” means amounts paid by the taxpayer:

     (1)  for purchase and installation of equipment and structures certified by the commissioner of public service as:

          (A)  directly necessary and used for capture, conversion, or storage of solar or wind energy through a photovoltaic array, wind turbine electrical generating technology, or hot water solar heating system; and

          (B)  having at least a five-year warranty covering defects in design, manufacture, and installation; and  

          (C)  installed on property in this state;

          (2)  including costs of necessary permits, and excluding the amount of any rebates or similar allowances or incentive payments to the taxpayer resulting from the purchase or installation.

Sec. 2.  EFFECTIVE DATE

     This act shall take effect January 1, 2004 and shall apply to expenditures made on and after January 1, 2004.