Uniform Capacity Tax

The Uniform Capacity Tax (UCT) applies to some solar energy plants and some grid-connected energy storage facilities that are not connected to a renewable energy plant. Different rates apply for the two types of facilities.  

Overview for Renewable Energy Plants Commissioned to Generate Solar Power

The Uniform Capacity Tax (sometimes called the Solar Energy Capacity Tax) is paid by the owners of solar plants with nameplate capacity equal to 50kW or greater. The tax is computed on the capacity of the solar plant, expressed in kW, and is paid annually for plants that are in operation as of December 31 of the tax year. The payment and SCT-603 return are due by the following April 15.

Multiple facilities are considered one plant when they use common infrastructure, such as roads, control facilities, and connections to the electric grid, and they are not found by the Public Utility Commission to be separate plants.

If a solar plant has nameplate capacity of less than 50kW, no tax is due.

Overview for Energy Storage Facilities

Uniform Capacity Tax is paid by the owners of stationary grid-connected energy storage facilities with a plant energy rating of 600kWh or larger. The rate is $0.50 per kWh of plant energy rating and is paid annually for facilities in operation as of December 31 of the tax year. The payment and SCT-603 return are due by the following April 15.   

An energy storage facility that is connected to a renewable energy generating plant is not subject to the UCT as a storage facility as long as it uses the same Certificate of Public Good as the connected plant. In this case, the UCT is paid using the rate for generating plants and no further UCT is due for the storage facility. 

How to File

Please complete and submit Form SE-603A, Solar Energy Capacity Tax Explanation, if the solar plant or energy storage facility has a nameplate capacity that makes it subject to UCT (50kW for plants and 600kWh for storage facilities), and it is not subject to the solar energy capacity tax. Please note: If a solar plant has nameplate capacity of less than 50kW or storage facility has a capacity less then 600kWh, there is no tax due and no SE-603A is required.

Beginning April 1, 2025, taxpayers filing Uniform Capacity Tax must use myVTax to file returns and pay tax due. myVTax is our free, secure, online filing site. If you have any questions, contact us at 802-828-2551 or tax.business@vermont.gov.

The Director of Taxpayer Services will consider a written request for a waiver from the e-file requirement based on extraordinary circumstances.

Forms

Filing Deadlines

The return and tax are due no later than April 15 of the following year.

LAWS, REGULATIONS AND GUIDANCE
32 V. S. A. Chapter 215 § 8701 Renewable Energy