This bill makes several administrative and policy adjustments to Vermont's tax laws, affecting property owners, businesses, and taxpayers. Key changes include repealing a tax credit denial for S corporations, adjusting property transfer tax rates for non-principal residential properties, and establishing a 10 percent land use change tax when agricultural or forest land is developed. The legislation also outlines procedures for withdrawing land from use value appraisal and sets timelines for assessing fair market value when land is converted from protected uses. These provisions aim to clarify tax calculations and update administrative processes across various tax categories.
S.269 would amend Vermont's tax code to exclude Supplemental Security Income (SSI) payments from the definition of "household income" when calculating two specific tax credits: the homestead property tax credit and the renter credit. This change directly affects Vermont residents who receive SSI and apply for these credits, as their SSI payments would no longer count toward their household income for eligibility purposes. The bill modifies the statutory definition of "household income" to explicitly exclude SSI payments, ensuring they are not considered when determining credit amounts. This adjustment would likely increase the tax credit amount for SSI recipients by reducing the income figure used in the calculation.
H.732 establishes two new income tax brackets for higher earners in Vermont. Individuals would pay an additional 1% tax on income between $200,000-$400,000 and above $400,000, while married couples filing jointly would pay the extra rate on income between $400,000-$800,000 and above $800,000. The revenue generated would fund an expanded property tax credit specifically for Vermont households with annual income below $115,000. This directly affects high-income taxpayers through new tax rates and low-to-moderate-income households via increased credit support.
This bill creates a Vermont family caregiver tax credit for residents who provide care to family members with long-term care needs. It allows eligible taxpayers to claim a refundable credit equal to 30% of qualified care expenses, up to $2,500 annually (adjusted for inflation after 2027), for expenses like respite care, adult daycare, and lost wages. To qualify, the care recipient must be a related family member aged 14+ with a medical condition that prevents them from performing two daily activities without help, and they cannot live in a licensed care facility. The credit is reduced for taxpayers with adjusted gross income over $125,000 and excludes expenses already claimed for child/dependent care. Households with eligible caregivers will also see their property tax credit eligibility expanded.
S.312 changes Vermont's machinery and equipment investment tax credit from nonrefundable to refundable, allowing qualifying businesses to receive a cash refund if the credit exceeds their tax liability (up to $500,000 annually). It removes previous limits that capped annual credit use at 80% of tax liability and $1 million per year, and extends the credit's expiration from 2030 to 2034. The bill directly affects Vermont businesses making qualifying capital investments in machinery/equipment, as certified by the Vermont Economic Progress Council. To qualify, businesses must report annual job counts, investment levels, and credit usage through the Council and Tax Commissioner.
This bill increases Vermont's downtown and village center tax credit program from $3 million to $5 million annually to support local business revitalization. It allocates specific funds for small business services, including $300,000 for legal support through Vermont Law School's business law center, $689,000 for expanded advising via the Small Business Development Center, and $594,000 to help microbusinesses through the Community Action Partnership. Additional funding includes $200,000 for an outdoor recreation economic study, $150,000 for the International Business Office, and $3 million for brownfields remediation. The bill also creates a task force to study business development needs and repeals the planned end of the Vermont Employment Growth Incentive program.
This bill (H 770) directs Vermont to opt out of a federal tax credit program that allows states to subsidize contributions to scholarship organizations for school expenses. It designates the Vermont General Assembly as the sole entity authorized to make this election, explicitly stating Vermont "shall not participate" in the program under federal law (26 U.S.C. § 25F). The policy change means Vermont residents will no longer be eligible for state tax credits when contributing to scholarship organizations, as the state declines to join the federal program. The bill takes effect July 1, 2026.
This bill extends the deadline for filing homestead declarations and offers relief for late submissions. It raises the household income limit for qualifying for the property tax credit and increases the amount of land value considered when calculating the credit amount. These changes directly affect Vermont homeowners who file homestead declarations to access property tax relief. The bill simplifies eligibility by making it easier to qualify for the credit through higher income thresholds and expanded land value inclusion. (3 sentences)
This bill creates a $500 refundable income tax credit for qualified emergency responders in Vermont, effective for taxable years beginning January 1, 2025 (retroactive to that date). It directly affects licensed emergency medical personnel, first responders, and volunteer firefighters meeting specific eligibility criteria under Vermont law. The credit is designed to recognize their public service, with eligibility defined by existing statutes covering their roles and volunteer status. The bill also updates related statutes to establish standards for volunteer firefighter eligibility and clarifies the credit's purpose. (3 sentences)
This bill creates a Vermont personal income tax credit for homeowners who make safety and accessibility modifications to their primary residence (homestead). It covers qualified expenses like ramps, stair lifts, widened doorways, bathroom renovations, and other safety-focused home improvements, up to a lifetime maximum of $15,000. Unreimbursed costs for these modifications can reduce income tax liability, with unused credit amounts carried forward for up to three years. The credit applies to taxable years beginning January 1, 2025, and is designed to help residents safely age in place.
