H 332 creates Vermont's Small Business Technical Assistance Exchange, providing grants and professional support to eligible small and mid-sized Vermont businesses. The program offers up to $5,000 per business for services like business operations, digital strategy, manufacturing upgrades, and legal consulting, administered by regional development corporations. To qualify, businesses must be for-profit, Vermont-based, with at least $5,000 annual revenue, and higher-income owners must provide a 50% match. The Exchange prioritizes outreach to rural businesses and historically marginalized groups, including Black, Indigenous, and People of Color Vermonters, New Americans, and others. Annual reports on program performance are required, with funding of $1.25 million appropriated for fiscal year 2026.
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H 74 would phase in full exemption of Social Security benefits from Vermont income tax over eight years. Currently, Vermont partially exempts Social Security benefits for lower-income seniors, but this bill raises the income thresholds where full exemption applies - increasing the single filer threshold from $65,000 to $77,000 and married filer threshold from $80,000 to $92,000. The change applies to all Vermont residents receiving Social Security benefits, with full exemption becoming effective by the eighth year. The bill amends Vermont’s tax code (32 V.S.A. § 5830e) to adjust the income-based exclusion rules. It is currently referred to the Committee on Ways and Means.
H 308 would temporarily exempt all building materials and supplies from Vermont's sales and use tax for manufacturers constructing or renovating facilities used exclusively for manufacturing tangible goods. The exemption applies to purchases exceeding $1 million annually over any three consecutive years, reducing construction costs for these businesses. It would take effect July 1, 2025, and sunset on July 1, 2028, reverting to Vermont's previous limited exemption for manufacturing facilities. This change directly affects manufacturers planning facility construction or renovation projects.
This bill establishes new requirements for Vermont state agencies when entering contracts to outsource services previously performed by state employees (called "privatization contracts"). It requires agencies to provide 35 days of notice to employee unions before bidding begins, during which alternatives to outsourcing can be discussed. Contracts must save the state at least 20% in costs compared to using state employees, guarantee private contractors pay at least the average wage for comparable state positions, and provide health insurance benefits equal to those offered to state workers. The bill also mandates quality standards, non-discrimination protections, and a review panel to ensure compliance before contracts are finalized.
H.309 allows Vermont income taxpayers to voluntarily contribute to the Vermont Housing and Conservation Trust Fund by selecting a checkoff option on their state income tax return. Taxpayers would designate funds that are deducted from their tax refunds or overpayments, not from new payments. The bill creates a simple, voluntary mechanism for public support of housing and conservation projects without requiring any additional tax burden. This change applies to tax returns filed for taxable years beginning January 1, 2025.
H 424 allows owners of managed forestland or reserve forestland to donate their land to Vermont's Department of Forests, Parks and Recreation without paying the land use change tax. The state must accept such donations only if the land is directly adjacent to existing state-managed forestland, located within a designated high-priority forest area, and the donation is unconditional. Donated land will be managed as state forestland or part of a state park, and donors will receive a property value assessment to claim federal charitable tax deductions. This bill amends tax definitions to explicitly exclude land donations to the state from being classified as "development" for tax purposes.
This bill exempts Vermont National Guard members' state active duty subsistence and quarters allowance from the state's personal income tax. It directly affects Vermont-resident National Guard members who receive this specific allowance during state active duty. The key provision adds this allowance to Vermont's list of exempt military income, removing it from taxable income calculations. The exemption applies retroactively to tax years beginning January 1, 2025, and takes effect January 1, 2026.
H 224 would establish a new charge on heating fuel purchases to fund energy efficiency programs for thermal energy (like home heating). This charge would directly affect customers who buy heating fuel, with the revenue specifically targeting improvements to home energy efficiency. The bill includes a cap to limit how much the charge can be, ensuring it doesn't exceed a set maximum amount. The Public Utility Commission recommended this approach, and the bill aims to implement it as written.
H.479 establishes the Vermont Rental Housing Improvement Program, providing grants and forgivable loans to landlords for rehabilitating or creating rental housing units. Funding is capped at $70,000 per accessible unit (meeting Vermont Access Rules) or $50,000 per standard unit, with landlords required to lease to specific eligible households (e.g., those exiting homelessness, refugees, or individuals with disabilities) for 5 or 10 years and keep rents at or below HUD's fair market rent. At least 30% of annual program funds must be reserved for five-year programs, and repaid funds return to the program. The Department must annually report on program usage, including units funded, tenant eligibility, and outcomes, to relevant legislative committees.
H.164 would change how Vermont distributes local option tax revenue to municipalities, increasing the share from 70% to 80% for the communities generating that revenue. It also requires that any surplus in the PILOT Special Fund (a fund for payments in lieu of taxes from state-owned properties) be distributed proportionally to the municipalities that contributed to the surplus. The bill directs the Joint Fiscal Office to prepare a report on transitioning to a system where the state retains only the minimal amount needed to administer the fund, aiming to eliminate future surpluses. This bill directly affects all Vermont municipalities receiving local option tax revenue and those contributing to the PILOT Special Fund.
