An act relating to economic development

All specific fiscal year 2027 appropriations were deleted: $300,000 for Vermont Small Business Law Center, $689,000 for Vermont Small Business Development Center, $594,000 for microbusiness development, $200,000 for outdoor recreation economic study, $150,000 for International Business Office, and $3,000,000 for brownfields remediation.

The amendment increasing the Downtown and Village Center Tax Credit Program annual cap from $3,000,000 to $5,000,000 was removed entirely.

VEGI annual incentive caps were reduced: initial approvals lowered from $15,000,000 to $10,000,000 and final approvals lowered from $10,000,000 to $5,000,000. A new mechanism allows the cap on final approvals to be increased by up to $5,000,000 upon Governor application and Joint Fiscal Committee approval.

A new two-year hospitality and culinary apprenticeship pilot program was created under the Department of Labor's Registered Apprenticeship Program, structured as a regional multi-employer model with at least one large employer, requiring enrollment of at least one apprentice cohort and measurable completion outcomes.

A new Rural Industry Development Grant Program was created within the Agency of Commerce and Community Development to provide grant funding through local development corporations for business relocation and expansion, including purchase, demolition, and renovation of property for industrial use. Priority may be given to rural communities with insufficient economic and grand list growth.

The culinary institute study was renamed and broadened to a 'Culinary and Hospitality Education' study. Leadership shifted from the Office of Workforce Strategy and Development to the Department of Labor in collaboration with the Vermont Chamber of Commerce. The scope expanded beyond just culinary arts to include hospitality programs, and the task now includes investigating locations, identifying educational and business models, and cataloging existing training opportunities.

The study on connecting Vermont to New York (examining Route 22A, a potential limited access highway to I-87, and rail connectivity) was removed entirely.

The Business Resources and Growth Study (Sec. 7) removed the Commissioner of Tourism and Marketing as a co-lead, leaving only the Commissioner of Economic Development. A new stakeholder consultation requirement was added, specifying representation from SBA, USDA, regional development corporations, planning commissions, Vermont Housing and Conservation Board, Vermont Professionals of Color Network, Small Business Law Center, Sustainable Jobs Fund, Employee Ownership Center, community action agencies, postsecondary institutions, and chambers of commerce.

Detailed provisions for the enhanced VEGI incentive for employee-owned businesses (defining ESOPs and worker cooperatives, setting the business share of new revenue growth at 90 percent, and specifying a modified qualifying payroll calculation) were removed.

The Convention Center Task Force end date was moved from December 31, 2027 to July 1, 2027, and the final report deadline was moved from November 15, 2027 to December 1, 2026.

The annual cap on the Vermont Downtown and Village Center Tax Credit Program was reduced from $5,000,000 (as passed by the Senate) to $3,500,000 in the enacted version.

A new section (9a) establishes annual caps on VEGI incentives: $10,000,000 for initial approvals and $5,000,000 for final approvals (down from $15M/$10M in the Senate version). The Governor may request the Joint Fiscal Committee to increase the final approval cap by up to $5,000,000.

All specific appropriations were deleted: $300,000 for Vermont Law School's Small Business Law Center, $689,000 for the Vermont Small Business Development Center, $594,000 for microbusiness development, $200,000 for the outdoor recreation economic study, $150,000 for the International Business Office, and $3,000,000 for brownfields remediation.

A new Rural Industry Development Grant Program (Sec. 12a) was created within the Agency of Commerce and Community Development to provide grants through local development corporations for business relocation and expansion, including property purchase, demolition, and renovation for industrial use. Awards are capped at the lesser of $1,000,000 or 20 percent of total project cost.

The culinary institute study was expanded to cover both culinary arts and hospitality education programs more broadly, and responsibility shifted from the Office of Workforce Strategy and Development to the Department of Labor in collaboration with the Vermont Chamber of Commerce.

The Business Resources and Growth Study (Sec. 7) removed the Commissioner of Tourism and Marketing as a responsible party, leaving only the Commissioner of Economic Development, and added a formal stakeholder consultation requirement with specific organizations listed including SBA, USDA, regional development corporations, and others.

The study on connecting Vermont to New York (covering Route 22A improvements, a potential new limited-access highway to I-87, and rail feasibility) was entirely removed from the enacted version.

A new two-year hospitality and culinary apprenticeship pilot program (Sec. 10b) was added, to be run through the Vermont Registered Apprenticeship Program as a regional multi-employer model with structured work-based learning across multiple employers, aligned with education providers, and built around no more than two apprenticeable occupations.

The Convention Center Task Force end date was changed from December 31, 2027 to July 1, 2027, while the maximum number of meetings was increased from six to 14. The final report deadline was moved from November 15, 2027 to December 1, 2026.

New subsection (d) in Sec. 3 allocates $200,000 in fiscal year 2027 to the Vermont Professionals of Color Network to support workforce and business development services for BIPOC small business owners, including education on basic business practices, resource navigation, and networking.

The annual cap on the Downtown and Village Center Tax Credit Program is set at $5,000,000 in the official text (up from $3,000,000 shown in the unofficial version).

A new Business Development Task Force is created (Sec. 8) with 11 specified members including legislators, the State Treasurer, agency commissioners, and business representatives. The Task Force must analyze a resources report, create an inventory of business resources by development stage, assess capital access, and submit an interim report by November 15, 2026 and a final report by November 15, 2027. It ceases to exist on December 31, 2027.

The International Business Office appropriation (Sec. 5) now explicitly includes a mandate to determine what additional supports are needed to further develop the economic relationship between Vermont and Taiwan, beyond its general continuing initiatives.

A new enhanced incentive for employee-owned businesses is added to the VEGI program (new section 3335a). Employee-owned businesses (ESOPs and worker cooperatives) receive a 90 percent share of new revenue growth (versus the standard 80 percent) and a modified qualifying payroll calculation that subtracts 20 percent of the background sector growth rate from the payroll performance requirement.

The business resources study (Sec. 7) is restructured: it is now jointly conducted by the Commissioner of Economic Development and the Commissioner of Tourism and Marketing, simplified to three tasks (identify resources, determine how they are promoted, and report findings), and the report deadline is October 1, 2026 directed to the new Task Force rather than December 15, 2026 directed to legislative committees.

The effective date provision now states that the act takes effect July 1, 2026, except that the effective dates section itself and Sec. 9 (convention center task force amendments) take effect on passage rather than waiting until July 1.

All specific dollar allocations were deleted: $300,000 for Vermont Law School's Small Business Law Center, $689,000 for the Vermont Small Business Development Center, $594,000 for the microbusiness development program, $200,000 for the outdoor recreation economic study, $150,000 for the International Business Office, and $3,000,000 for brownfields remediation.

The increase of the downtown and village center tax credit program from $3,000,000 to $5,000,000 annually was removed entirely.

The business resources study was significantly expanded and reassigned. It now falls solely to the Commissioner of Economic Development (previously shared with the Commissioner of Tourism), adds requirements to define each stage of business development, assess capital access opportunities including the Tech Hub designation, identify investor education opportunities, and include employee-owned business representatives in stakeholder consultation. The report deadline moved from October 1, 2026 to December 15, 2026.

A new section requires the Office of Workforce Strategy and Development to study the feasibility of establishing a new culinary institute in Vermont, including researching locations, determining which institution should administer it, assessing legislative funding needs, building restaurant relationships, and gauging private investor interest. A report is due December 1, 2026.

A new section requires the Vermont Association of Planning and Development Agencies to study short- and long-term solutions to connect Vermont and New York economies, specifically examining Route 22A condition and improvement options, a potential limited access highway from Burlington to Interstate 87 in New York with cost estimates, and the feasibility of a rail system connecting the two states. A report is due January 15, 2027.

The Business Development Task Force (with 14 members including legislators, state officials, and business leaders) was deleted. It had been tasked with analyzing business resources, capital access, succession planning, and investor education, with an interim report due November 15, 2026 and a final report due November 15, 2027.

The new enhanced VEGI incentive for employee-owned businesses was removed. This would have given ESOPs and worker cooperatives a 90 percent share of new revenue growth (versus the standard 80 percent), modified how qualifying payroll is calculated, and expanded the definition of qualifying jobs to include employees of employee-owned businesses.

The amendment increasing the convention center task force meeting limit from 6 to 14 times was removed.

The effective date provision was simplified. The introduced version had an exception making the convention center task force amendment effective on passage; the Senate version simply states the act takes effect July 1, 2026 with no exceptions.