Rep. Greg Burke proposes raising uniform capacity tax on large solar arrays to $16/kW, earmarks half for Farm Security Fund
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Summary
Rep. Greg Burke introduced a bill to raise the state's uniform capacity tax on utility-scale solar arrays from about $4 per kilowatt to $16 per kilowatt, saying the change would align tax treatment with other utilities and direct half the new revenue to the Farm Security Special Fund to help farmers.
Representative Greg Burke introduced a bill to raise Vermont's uniform capacity tax on utility-scale solar arrays, telling the House Ways & Means Committee his proposal would increase the current rate of about $4 per kilowatt to $16 per kilowatt for arrays above the current exemption threshold.
"Uniform capacity tax is the tax on solar arrays in our state," Representative Greg Burke said, explaining that the UCT charges by nameplate kilowatt rather than through regular property appraisal. Burke used 1-megawatt and 20-megawatt examples to show scale and said the proposed rate would better align the tax with how other power systems are valued.
Burke told the committee the rate increase would still keep array taxation below a full property-valuation approach but would narrow a perceived gap between solar developers and other utilities. He said the proposed change would apply to array owners, including already-installed systems, and would not affect home rooftop systems because the bill would not trigger until roughly 50 kilowatts — "about the size of a tennis court."
Burke also proposed directing half of the additional revenue into the Farm Security Special Fund, which he said was established last year by S.60 but currently has no dedicated funding. "From what my research looks like, about $7,300,000 additional taxes coming in through this," he told members, and suggested that directing funds to the farm fund would help farmers whose land is converted to arrays.
Committee members asked clarifying questions about appraisal work and whether the change would apply to existing projects; Burke confirmed it would apply to existing owners above the threshold. Members also discussed local examples of projects and the challenges towns face assessing land value before conversion to utility use.
No formal vote was taken; the bill was introduced for committee consideration and discussion. The committee recessed to House floor business and planned to resume later in the day to continue committee work.