Introduced by Senator Illuzzi of Essex-Orleans District, Senator Shepard of Bennington District and Senator Maynard of Rutland District
Subject: Taxation; buildings; green construction; income tax credit
Statement of purpose: This bill proposes to offer a tax credit for new or rehabilitated green buildings.
AN ACT RELATING TO TAX CREDITS FOR GREEN BUILDINGS
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5930y is added to read:
§ 5930y. CREDIT FOR GREEN BUILDINGS
(a) A taxpayer of this state shall be eligible for a nonrefundable credit against the income tax imposed under this chapter of five percent of allowable costs paid or incurred by an individual or corporation during the taxable year for the construction or rehabilitation of an eligible green building. If the taxpayer is a partnership, limited liability company, or S corporation, the credit amount under this subsection shall be allocated ratably among the owners of the entity.
(b) For the purposes of this subsection:
(1)(A) “Allowable costs” means amounts properly chargeable to capital account, other than for land, that are paid or incurred on or after July 1, 2005 for:
(i) construction or rehabilitation;
(ii) commissioning costs;
(iii) interest paid or incurred during the construction or rehabilitation period;
(iv) architectural, engineering, and other professional fees allocable to construction or rehabilitation;
(v) closing costs for construction, rehabilitation, or mortgage loans;
(vi) recording taxes and filing fees incurred with respect to construction or rehabilitation; and
(vii) lighting, plumbing, electrical wiring, and ventilation.
(B) “Allowable costs” does not include:
(i) the cost of telephone systems and computers, other than electrical wiring costs;
(ii) legal fees allocable to construction or rehabilitation; or
(iii) site costs, including temporary electrical wiring, scaffolding, demolition costs, and fencing and security facilities.
(2) “Eligible green building” means a building located in the state that:
(A)(i) is a building used primarily for nonresidential purposes if the building contains at least 5,000 square feet of interior space;
(ii) is a residential multifamily building with at least six dwelling units that each contain at least 1,200 square feet of interior space; or
(iii) is any combination of buildings described in subdivision (i) or (ii) of this subdivision (A); and
(B) is certified as having attained a minimum of “Silver” in the USGBC’s LEED Rating System Version 2.0.
(3) “LEED” means Leadership in Energy and Environmental Design.
(4) “USGBC” means the United States Green Building Council.
The Vermont General Assembly
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