An act relating to excluding disabled veterans’ disability and pension income from household income

This bill modifies Vermont's homestead property tax credit rules by excluding disability and pension income from permanently and totally disabled veterans when calculating household income. The change is made to the state's tax code definition of modified adjusted gross income, specifically removing Veterans' disability and pension payments from the list of income sources that must be added to federal adjusted gross income. This adjustment directly affects disabled veterans who receive benefits from the U.S. Department of Veterans Affairs, allowing them to potentially qualify for or receive larger property tax credits. The law applies retroactively to January 1, 2023, and applies to property tax credit claims filed on or after January 1, 2024.