An act relating to economic development
Sponsored By: Sponsor information unavailable
Signed by Governor
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 4 benefits, 1 costs, 4 mixed.
More reimbursed meetings for convention planners
Convention Center Task Force members can receive compensation or expense reimbursement for up to 14 meetings, up from six. Legislative members receive per diem pay and expense reimbursement for attendance while the General Assembly is adjourned. Other members receive expense reimbursement. This provision ends July 1, 2027.
New upgrade financing for larger properties
Beginning June 8, 2026, municipalities can establish commercial property-assessed clean energy financing districts, called C-PACE. A majority of the municipal governing body must approve the district at a publicly announced meeting. Private financing covers renewable energy, energy efficiency, water conservation, and resiliency projects; residential buildings with fewer than five units are excluded. Owners accept an assessment only through a written municipal agreement and can separately arrange project construction. Otherwise eligible improvements completed and operating within 36 months before application qualify; the administrator can waive that time limit.
Towns avoid property upgrade debt risks
Beginning June 8, 2026, municipalities entering C-PACE agreements cannot borrow money or otherwise finance participating projects. They cannot pledge their full faith and credit to back the projects. Municipalities are not liable when a project fails to perform.
More protection for existing grant recipients
Rural industry grant recipients are protected from deed terms requiring repayment of grant principal or sharing sales profits with Vermont. Those terms are void and cannot be enforced. Grants awarded before the law's effective date qualify for 50% reimbursement of invoices submitted on or after that date. The award must not be fully paid out, and reimbursements cannot increase the existing total award.
Debt limits for property upgrade borrowers
Beginning June 8, 2026, C-PACE applicants need the required project engineering analysis, certification, or feasibility study. Each mortgage or deed-of-trust holder must give written consent and confirm that the assessment does not trigger default. The assessment plus outstanding mortgage debt cannot exceed 90% of the property's appraised value as completed or stabilized. Repayment cannot exceed 30 years or the improvements' useful life, whichever is shorter; multiple improvements use a cost-weighted average life. Agreements must follow applicable Vermont lending laws.
Cash shoppers face nickel rounding
When pennies are unavailable or impractical, sellers can round purchases paid fully or partly in cash to the nearest five cents. Totals ending in 1, 2, 6, or 7 cents round down; 3, 4, 8, or 9 round up. Taxes and fees use the original total, and cash refunds must equal the amount originally paid. Rounding excludes noncash payments, wages, rebates, cash disbursements, and transactions where federal law bars rounding. Sellers must clearly post a notice at checkout or the entrance; the Commissioner of Liquor and Lottery must provide a model by July 1, 2026.
Upgrade borrowers face flexible loan costs
Beginning June 8, 2026, C-PACE lenders must explain program risks, including nonpayment and foreclosure, and early-payment terms. Private financing agreements set early-payment charges; the separate clean energy program's penalty-free full-payment rule does not apply. Specified lending-law deposit and prepayment protections also do not apply, and parties can agree to rates above the usual statutory rate. Municipalities can run programs directly or hire another municipality, public agency, or private administrator. Administrators can collect necessary administration fees, and municipalities can charge operating-cost fees; the law sets no fee amounts.
Upgrade financing liens outrank most debts
Beginning June 8, 2026, recorded C-PACE assessment liens rank ahead of all other liens except property-tax liens. Owners must enter a C-PACE agreement and obtain the required lender consent. The lien stays with the property; foreclosure does not make future payments immediately due or erase them. Assessments due through a foreclosure title transfer must be paid before title can transfer. The municipality must release the lien once the assessment is fully paid.
Bigger grants for local development projects
Vermont local development corporations can receive rural industry grants covering up to 50% of project costs, up from 20%, capped at $1 million. Federally impacted property projects can receive up to $2 million with Secretary certification of the required location. That location must be a designated downtown development district and either a REAP Zone or a federal disaster area declared within five years before applying. Expanded uses include commercial property purchases, future commercial or industrial development under an agreement, and residential purchases or redevelopment of federally impacted property. Existing site, permitting, infrastructure, loan-equity, and matching uses remain; applicants must submit a local and regional market assessment and show project readiness.
Sponsors & Cosponsors
Sponsors
There is no primary sponsor on record.
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
Actions Timeline
Senate Message: Signed by Governor June 8, 2026
5/29/2026SenateSigned by Governor on June 8, 2026
5/29/2026SenateDelivered to Governor on June 2, 2026
5/29/2026SenateSenate Message: House proposal of amendment concurred in
5/14/2026SenateAs passed by Senate and House
5/13/2026SenateHouse proposal of amendment concurred in
5/13/2026SenateHouse proposal of amendment; text
5/13/2026SenateUnfinished Business/House Proposal of Amendment
5/13/2026SenateUnfinished Business/House Proposal of Amendment
5/12/2026SenateUnfinished Business/House Proposal of Amendment
5/8/2026SenateNew Business/House Proposal of Amendment
5/7/2026SenateHouse proposal of amendment
5/6/2026SenateEntered on Notice Calendar
5/6/2026SenateHouse message: House passed bill in concurrence with proposal(s) of amendment
5/6/2026HouseRead third time and passed in concurrence with proposal of amendment
5/1/2026HouseAction Calendar: Third Reading
5/1/2026HouseThird Reading ordered
4/30/2026HouseReport of Committee on Commerce and Economic Development, as amended, agreed to
4/30/2026HouseReport of Committee on Commerce and Economic Development amended as recommended by Committee on Ways and Means
4/30/2026HouseRep. Stevens of Waterbury recommended for the Committee on Appropriations
4/30/2026HouseRep. Kimbell of Woodstock recommended for the Committee on Ways and Means
4/30/2026HouseRep. Duke of Burlington reported for the Committee on Commerce and Economic Development
4/30/2026HouseRead second time
4/30/2026HouseAction Calendar: Favorable with Amendment
4/30/2026HouseNotice Calendar: Favorable with Amendment
4/29/2026House
Bill Text
As Enacted (ACT 128)Opens in a new window
6/23/2026
As Passed by Both Chambers
5/26/2026
As Passed by Both Chambers (Unofficial)
5/26/2026
House Proposal of Amendment
5/5/2026
House Proposal of Amendment (Unofficial)
5/5/2026
As Passed by the Senate
3/26/2026
As Passed by the Senate (Unofficial)
3/26/2026
As Introduced
1/29/2026
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