Bill > H0712

This bill increases the Uniform Capacity Tax, a tax on solar generation and energy storage facilities, by significantly raising the rates for both solar power generation and stationary grid-connected energy storage. Specifically, the tax on solar generation will rise from $4.00 to $16.00 per kilowatt (kW) of plant capacity, and the tax on energy storage facilities will increase from $0.50 to $2.00 per kilowatt-hour (kWh) of plant energy rating. The revenue generated from this increased tax will be split equally, with half going to the existing Education Fund and the other half directed to a newly established Farm Security Special Fund. This new fund is designed to provide grants to farms that have suffered financial losses or incurred expenses due to specific "eligible weather conditions," which are defined to include a range of severe weather events like high winds, flooding, extreme heat, drought, and widespread fire, among others. The grants can cover up to 50 percent of uninsured losses, with a maximum award of $150,000 per farm annually, and will be administered by the Secretary of Agriculture, Food and Markets, with oversight from a newly created Farm Security Special Fund Review Board. The bill also specifies that these tax changes will take effect on July 1, 2026.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.712