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Alternative Fuel and Advanced Vehicle Research and Development Tax Credit

Vermont businesses that qualify as a high-tech business involved exclusively in the design, development, and manufacture of alternative fuel vehicles, hybrid electric vehicles, all-electric vehicles, or energy technology involving fuel sources other than fossil fuels 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 credit; 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 5930a, c, f, g, and k)

Alternative Fuel Vehicle (AFV) Acquisition Requirements

The Vermont Department of Buildings and General Services must consider AFVs when purchasing vehicles for state use, provided that 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)

Natural Gas Tax

As of July 1, 2013, natural gas used to propel a motor vehicle is not subject to the state gasoline tax, but is subject to sales and use tax. (Reference House Bill 770, 2012, and Vermont Statutes Title 32, Chapter 233, Section 9741, and Title 23, Chapter 28, Section 3101)

State Agency Energy Plan Transportation Requirements

The Vermont Agency of Administration developed and oversees the implementation of the State Agency Energy Plan (Plan). The Agency of Administration must modify the Plan as necessary and re-adopt it on or before January 15 of each fifth year. As specified in the 2010 Plan, the Vermont Agency of Transportation must continue to use 5% biodiesel (B5) in its fleet of heavy-duty vehicles. The Vermont Department of Buildings and General Services must continue to use hybrid electric vehicles and Partial Zero Emission Vehicles in its fleet, while adjusting purchases based on annual fleet selection monitoring and available vehicle technology. All state agencies must investigate the use of additional alternative fuel and advanced technology vehicles, as well as the necessary fueling infrastructure, such as incorporating electric vehicle supply equipment at appropriate state facilities.
The Plan specifies the responsibilities of the Climate Neutral Working Group (Working Group). All state government agencies, offices, and departments must purchase the most fuel-efficient vehicles available in each vehicle class according to specifications set by the Working Group. The Working Group must consider vehicles that meet high fuel economy standards and emit reduced levels of greenhouse gases, criteria pollutants, and hazardous air contaminants. Additionally, the Working Group must expand education and tracking related to anti-idling campaigns for state fleet vehicles and private sector vehicles operating on state owned property, and conduct a survey to determine the level of government employee participating in carpooling, vanpooling, and other commuting options.
(Reference Vermont Statutes Title 3, Chapter 45, Section 2291, and Executive Order 14-03, 2003)