This bill exempts U.S. military retirement income and survivor benefit income received by Vermont residents from state income tax. It directly affects Vermont veterans and their surviving spouses or dependents who receive these benefits. The bill amends Vermont's tax code to add these income types to the list of exclusions from taxable income under § 5811, specifically adding a new exclusion (vii) for military retirement and survivor benefits. The change takes effect retroactively for taxable years beginning January 1, 2026.
H 267 establishes the Vermont Hospital Security Plan, creating a state-administered program to provide hospital coverage for all Vermont residents regardless of insurance status or ability to pay. The plan requires hospitals to accept the state's negotiated annual payments (based on global budgets) for services provided to all patients, prevents balance billing for Vermont residents beyond set cost-sharing amounts, and includes out-of-state hospital coverage for Vermont residents. Key mechanisms include annual global hospital budgets limiting cost growth to the Consumer Price Index plus 3.5%, a dedicated trust fund financed by state transfers and federal Medicaid/Medicare funds, and appeal processes for denied claims. This directly affects Vermont residents seeking hospital care and Vermont hospitals receiving state payments.
Vermont's S.51 creates a $1,000-per-child refundable tax credit for residents with children under age 6, regardless of whether they or their children have a federal tax ID number. It also expands the state's earned income tax credit to cover individuals who qualify federally but lack required tax IDs, and adjusts exclusions for Social Security and Civil Service retirement income based on income thresholds (e.g., full exclusion for single filers earning ≤$55,000 or married couples ≤$70,000). The bill directly affects low-to-moderate-income families, retirees, and individuals with limited access to federal tax IDs. Signed into law by Governor on June 25, 2025, it modifies Vermont's tax code to broaden eligibility for existing federal credit programs.
H.140 creates a state grant program to fund community nurses and care coordinators working with Vermont municipalities, primarily benefiting rural residents with complex health needs. Municipalities can apply for grants up to $10,000 annually to establish or expand these programs, requiring clear financial management, legislative approval, and plans for long-term funding. The bill appropriates $200,000 annually starting in fiscal year 2026 to support this initiative, aiming to improve health outcomes and reduce overuse of hospitals. The program will take effect on July 1, 2025, with grants administered by the Department of Health.
H 378 establishes a new program allowing Vermont municipalities to use tax increment financing (TIF) to fund housing infrastructure projects. It enables cities and towns to leverage future increases in property tax revenue - specifically from education and municipal property taxes - to finance infrastructure like utilities, brownfield cleanup, and transportation improvements that stimulate new housing development. Municipalities must create a housing infrastructure project plan, hold public hearings, and get approval from the Vermont Economic Progress Council before using TIF funds. The bill directly affects local governments seeking to finance housing-related infrastructure without increasing tax rates, with funds restricted to approved projects and related costs.
H 141 adjusts funding allocations for specific state agencies within the fiscal year 2025 budget. It modifies budget line items for agencies like the Agency of Digital Services (reducing operating expenses by $786,000), the Judiciary (increasing operating expenses by $2,161,576), and Public Safety (increasing general fund allocations by $873,577). These changes directly affect how state funds are distributed to these departments for their operations. The bill does not create new programs or policies but reallocates existing budget resources as reflected in the amended budget line items.
This bill creates a new enhanced incentive within Vermont's Vermont Employment Growth Incentive Program (VEGI) specifically for employee-owned businesses. It directly affects qualifying employee-owned businesses (including worker cooperatives and ESOPs) applying for VEGI funding by increasing their share of state funds from 80% to 90% of new revenue growth generated. Key changes include a modified payroll calculation method and a specific definition for "employee-owned business" that aligns with federal tax definitions. The goal is to support these locally controlled businesses, which typically offer higher wages and benefits, by providing a stronger financial incentive for growth. The incentive becomes effective July 1, 2025.
