An act relating to the Vermont earned income tax credit and the Vermont child tax credit

This bill (H 90) increases Vermont’s earned income tax credit and child tax credit amounts and prevents these credits from being used to pay other state debts. It raises the credit percentage to 55% for households with qualifying children and 100% for households without children, based on the federal credit amount. The bill specifically prohibits tax debt setoff - meaning the state cannot seize these credits to cover unpaid taxes or other obligations. The changes apply retroactively to taxable years beginning January 1, 2025, directly benefiting low-to-moderate-income Vermont residents who qualify for these credits.