An act relating to the medical expenses deduction

This bill modifies Vermont's income tax rules to allow taxpayers to deduct more medical expenses related to continuing care retirement communities. It specifically removes the current cap that limits how much of these entrance fees or monthly payments can be deducted, aligning them more closely with federal rules for long-term care insurance premiums. The change directly affects Vermont residents who pay for continuing care retirement community services and itemize their medical expenses on their state income tax returns. By removing this restriction, the bill increases the amount of these specific payments that can be deducted from taxable income. The law applies retroactively to January 1, 2023, and covers taxable years beginning on or after that date.