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BILL AS INTRODUCED 2007-2008

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H.343

Introduced by   Representatives Dostis of Waterbury, Cheney of Norwich, Copeland-Hanzas of Bradford, Edwards of Brattleboro, Flory of Pittsford, Hube of Londonderry, Klein of East Montpelier, Krawczyk of Bennington, Masland of Thetford, Mitchell of Barnard, Nuovo of Middlebury, Sweaney of Windsor, Westman of Cambridge and Weston of Burlington

Referred to Committee on

Date:

Subject:  Taxation; income tax; tax credit; solar energy equipment; geothermal, fuel cell, and microturbine property

Statement of purpose:  This bill proposes to create a business income tax credit for installation of solar energy equipment, and geothermal, fuel cell, and microturbine property.

AN ACT RELATING TO SOLAR ENERGY BUSINESS INCOME TAX CREDIT

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

Sec. 1.  32 V.S.A. § 5822(c)(1)(B) and (d) are amended to read:

(c)  The amount of tax determined under subsection (a) of this section shall be:

(1)  increased by 24 percent of the taxpayer's federal tax liability for the taxable year for the following:

* * *

(B)  recapture of federal investment tax credit and increased by 76 percent of the Vermont-property portion of the business energy credit component of the federal investment tax credit recapture for the taxable year;

(d)  A taxpayer shall be entitled to a credit against the tax imposed under this section of 24 percent of each of the credits allowed against the taxpayer's federal income tax for the taxable year as follows:  elderly and permanently totally disabled credit, investment tax credit, and child care and dependent care credits.  A taxpayer shall also be entitled to a credit against the tax imposed under this section of 76 percent of the Vermont-property portion of the business energy credit component of the federal investment tax credit allowed against the taxpayer’s federal income tax for the taxable year under Section 48 of the Internal Revenue Code.

Sec. 2.  32 V.S.A. § 5930z is added to read:

§ 5930z.  Pass-Through of Federal Energy Credit for

                Corporations

(a)  A taxpayer of this state shall be eligible for a credit against the tax imposed under section 5832 of this title in an amount equal to the

Vermont-property portion of the business energy credit component of the federal investment tax credit allowed against the taxpayer’s federal income tax for the taxable year under Section 48 of the Internal Revenue Code, multiplied by the taxpayer’s allocation factor for the taxable year as determined under section 5833 of this title. 

(b)  Any taxpayer who has received a credit under subsection (a) of this section in any prior year shall increase its corporate income tax under this chapter by the amount of the Vermont-property portion of the business energy credit component of the federal investment tax credit recapture for the taxable year, multiplied by the taxpayer’s allocation factor for the original credit year, as determined under section 5833 of this title.  

Sec. 3.  EFFECTIVE DATE

Secs. 1 and 2 of this act (business energy tax credits) shall apply to taxable years 2008 and after.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us