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VT — State Policy Updated January 2026

Vermont

Vermont Employment Growth Incentive (VEGI) Vermont Training Program Act 250 land use permits Section 248 Certificate of Public Good Act 181 land use modernization

Overview

Vermont has no data center-specific tax incentives. Instead, the state offers general business programs including VEGI (a performance-based cash incentive) and the Vermont Training Program. Large projects trigger Act 250 land use review, which examines ten environmental and community criteria. New energy infrastructure tied to a data center requires a Certificate of Public Good from the Public Utility Commission under Section 248. Act 181, passed in 2024, is modernizing the state’s land use framework through a multi-year rulemaking process.

Incentives

Vermont Employment Growth Incentive (VEGI)

VEGI is a performance-based cash incentive administered by the Vermont Economic Progress Council.[1][2] Unlike a tax credit, it does not require the company to have a Vermont income tax liability.

  • The program uses a two-step approval process (Initial and Final).
  • Approval requires a “but for” determination — the project must not move forward without VEGI support.
  • Payments are tied to verified performance on new payroll, employment, and capital investment.

Vermont Training Program

The Vermont Training Program provides grants for pre-employment, new employee, and incumbent worker training.[3]

  • Grants must supplement, not replace, existing training budgets.
  • Training must align with job duties and workforce development goals.

Requirements and Conditions

Act 250 Land Use Permits

Act 250 requires a state land use permit for commercial development above size thresholds that vary by municipality.[4][5] These thresholds depend on whether the town has adopted strong local zoning.

  • In “10-acre municipalities” (those with strong zoning), projects ≥10 acres trigger Act 250.
  • In “1-acre municipalities” (weaker zoning), projects ≥1 acre trigger review.
  • The state reviews ten criteria including air and water pollution, water supply impacts, soil erosion, transportation, municipal services, scenic and historic resources, land use capability, and consistency with local and regional plans.[6]

Section 248 Certificate of Public Good

Any data center that builds on-site generation or requires new transmission lines must obtain a Certificate of Public Good from the Public Utility Commission before site preparation or construction.[7] This process evaluates whether the energy infrastructure serves the public interest.

Act 181 Land Use Modernization

Act 181 (2024) is reshaping Vermont’s land use review system.[8] The law creates a professional Land Use Review Board and moves toward a tiered, location-based jurisdiction model. Rulemaking and mapping work will continue through 2025–2026, which may affect where and how large industrial projects are reviewed.

What to Watch

  • Act 181 rulemaking — The state is mapping new jurisdiction tiers and drafting rules through 2026. These changes will determine where Act 250 applies and may shift approval pathways for large facilities.
  • No legislative push for data center incentives — Vermont has not joined states offering sales tax exemptions or property tax abatements for data centers. Any future sector-specific incentive would require new legislation.

Sources

[1] Vermont Economic Progress Council, “Vermont Employment Growth Incentive Overview,” December 23, 2025, https://outside.vermont.gov/agency/ACCD/ACCD_Web_Docs/ED/VEPC/2025/Vermont%20Employment%20Growth%20Incentive%20Overview%2012.23.2025.pdf (accessed January 8, 2026).

[2] Vermont Agency of Commerce and Community Development, “Vermont Employment Growth Incentive (VEGI),” n.d., https://accd.vermont.gov/economic-development/vepc/vegi (accessed January 8, 2026).

[3] Vermont Agency of Commerce and Community Development, “Vermont Training Program (VTP),” n.d., https://accd.vermont.gov/economic-development/programs/vtp (accessed January 8, 2026).

[4] Vermont Land Use Review Board, “Do I Need a Permit?” n.d., https://act250.vermont.gov/act250-permit/need-a-permit (accessed January 8, 2026).

[5] Vermont Land Use Review Board, “1-Acre and 10-Acre Municipalities,” n.d., https://act250.vermont.gov/1-acre-and-10-acre-municipalities (accessed January 8, 2026).

[6] Vermont Land Use Review Board, “What Are the Act 250 Criteria?” published January 8, 2026, https://act250.vermont.gov/act250-permit/criteria (accessed January 8, 2026).

[7] Vermont Agency of Commerce and Community Development, “Preservation in Section 248 (Public Utility Commission),” n.d., https://accd.vermont.gov/historic-preservation/resources-rules/laws-regulations/section-248 (accessed January 8, 2026).

[8] Vermont Land Use Review Board, “Act 181: Modernizing Land Use Review,” n.d., https://act250.vermont.gov/new-land-use-review-framework-act-181 (accessed January 8, 2026).