Vermont Incentives and Laws

Last Updated July 2006

State Incentives

Alternative Fuel Vehicle (AFV) Research and Development Tax Credit

Vermont businesses involved exclusively in the design, development, and manufacture of electric vehicles (EVs), AFVs, or hybrid vehicles (HEVs), as well as energy technology involving fuel sources other than fossil fuels, that qualify as a “high-tech business” are eligible for up to three of the following income tax credits:

1) A percentage of increased payroll costs;
2) 10% of qualified research and development expenditures;
3) A credit against export taxes;
4) 5% to 10% of total investments in plants or facilities, machinery, and equipment (small business investment tax credit);
5) a. Up to 6% of investments in machinery and equipment ($100,000 per year maximum);
b. Up to 6% of investments for renovation of existing facilities to provide cable, fiber, or telecommunications access;
c. 20% of qualified training, education, and workforce development expenditures; sales and use tax exemption for approved personal computers and software.

Certain limits and restrictions apply. (Reference Vermont Statutes Title 32, Chapter 151, Section 5930k)

State Laws and Regulations

Agricultural Economic Development Plan for Biofuels

The Department of Agriculture will develop an economic initiative to provide business and technical assistance for research and planning to aid farmers in developing business enterprises that harvest biomass, convert biomass to energy, or produce biofuels such as biodiesel and ethanol. These projects may be eligible for funding under the Vermont Clean Energy Development Fund. (Reference House Bill 602, 2006, House Bill 859, 2006, and Vermont Statutes Title 6, Chapter 209, Section 4710)

Governor’s Commission on Climate Change

Recognizing that emissions from vehicles are the largest source of greenhouse gas emissions in Vermont, the Governor’s Commission on Climate Change was established to develop and provide the Governor with recommendations on how to reduce greenhouse gas emissions in the state. The Commission will submit these recommendations to the Governor in a Climate Change Action Plan no later than September 1, 2007. (Reference Executive Order 07-05, 2005)

Fuel Efficient Vehicle Acquisition Requirements

A Climate Neutral Working Group (Working Group) was established in an effort to reduce greenhouse gas emissions from state government operations. As part of this effort, all state government agencies, offices, and departments are directed to purchase the most fuel efficient vehicles available in each vehicle class according to specifications set by the Working Group. The Working Group is directed to consider vehicles that meet high fuel economy standards and provide lower total overall emissions of greenhouse gases, criteria pollutants and hazardous air contaminants. This directive expires on July 1, 2020. (Reference Executive Order 14-03, 2003)

Neighborhood Electric Vehicle (NEV) Access to Roadways

An NEV is defined as an electric vehicle which is designed to be, and is, operated at speeds of up to 25 miles per hour (mph) and conforms to the minimum safety equipment requirements as adopted in the Federal Motor Vehicle Safety Standard Number 500, Low Speed Vehicles (49 C.F.R. 571, 500). NEVs may only be used on roads that have a posted speed limit of 35 mph or less. (Reference Vermont Statutes Title 23, Chapter 1, Section 4, and Chapter 13, Sections 1007a and 1043)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

The commissioner of buildings and general services must consider AFVs when purchasing vehicles for state use, providing the alternative fuel is suitable for the vehicle's operation, is available in the region where the vehicle will be used, and is competitively priced with conventional fuels. (Reference Vermont Statutes Title 29, Chapter 49, Section 903)

State Agency Energy Plan Transportation Requirements

The Secretary of Administration is responsible for developing and overseeing the implementation of a State Agency Energy Plan for State Government. The plan, adopted in July 2005, must be modified as necessary and readopted by the Secretary on or before January 15 of each fifth year after 2005. The plan encourages the investigation of the environmental and economic feasibility of replacing the use of conventional diesel fuel with appropriate biodiesel blends. Additionally, all vehicles purchased for inclusion in the Vermont State Fleet must be among the most fuel efficient and lowest emission vehicle models in each class. This includes a purchasing preference for appropriate advanced technology vehicles including hybrid electric vehicles. Furthermore, the Secretary, in coordination with the Agency of Natural Resources, Agency of Transportation, and Department of Buildings and General Services, will expand education and tracking of vehicle engine anti-idling campaigns pertaining to state fleet vehicles and private sector vehicles operating on state-owned property. (Reference Vermont Statutes, Title 3, Chapter 45, Section 2291)

Point of Contact

Debra Baslow
Buildings Engineer
Department of Buildings and General Services
Phone (802) 828-0377
Fax (802) 828-3533
debra.baslow@state.vt.us
http://www.bgs.state.vt.us/pdf/VTStateEnergyPlan.pdf
 

Utilities/Private Incentives

Natural Gas Vehicle (NGV) Incentives

Vermont Gas Systems will provide technical assistance on a case-by-case basis to customers wishing to purchase and operate NGVs.

Point of Contact

James (J.J.) Mullowney
Manager, Technical Services
Vermont Gas Systems
Phone (802) 863-4511 x339
Fax (802) 658-3926
jmullowney@vermontgas.com
 

Vermont Points of Contact: