Vermont Clarifies State Solar ITC Guidance
The Vermont Department of Taxes revised Technical Bulletin 45 to clarify administrative details of the state solar energy investment tax credit (ITC). No functional aspects of the credit were changed, but the bulletin clarifies that the Vermont solar tax credit is 24 percent of the federal ITC and is only available for the Vermont-property portion of the investment. The solar ITC is the only component of the renewable energy ITC that may be carried forward for up to five years. The credit is not available to C corporations and Vermont no longer offers a business solar ITC for 100 percent of the Vermont-property portion of the federal credit. The amount of credit available is limited by a taxpayer’s liability.