An act relating to excluding public safety pension and survivor benefit income from income taxation

This bill (H.584) amends Vermont's tax code to exclude income from public safety pensions and survivor benefits from state income taxation. It directly affects Vermont police officers, firefighters, and emergency medical technicians (EMTs), as well as their survivors, by removing this income from taxable earnings. The key mechanism adds a specific exclusion to Vermont's definition of "taxable income" under 32 V.S.A. § 5811(21)(B)(vii), ensuring these benefits are not included in the calculation of state income tax. The change takes effect retroactively for taxable years beginning January 1, 2026.