Vermont Electric Laws and Incentives

State Incentives

Alternative Fuel Vehicle (AFV) and Hybrid Electric Vehicle(HEV) Research and Development Tax Credit

Vermont businesses involved exclusively in the design, development, and manufacture of electric vehicles (EVs), AFVs, HEVs, as well as energy technology involving fuel sources other than fossil fuels, and qualify as a “high-tech business” are eligible for up to three of the following tax credits: 1) payroll income tax credit; 2) qualified research and development income tax credit; 3) export tax incentive; 4) small business investment tax credit; and 5) high-tech growth tax credit. Certain limits and restrictions apply. (Reference Vermont Statutes Title 32, Chapter 151, Section 5930k)

State Laws and Regulations

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 Title 49 of the Code of Federal Regulations, section 571.500. An NEV 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)