Budget & Taxes

H.790 adjusts specific line items in Vermont's fiscal year 2026 budget, primarily modifying existing funding allocations rather than creating new programs. It increases renter rebate funding from $9.5 million to $11 million (a $1.5 million increase) and decreases homeowner rebate funding from $19 million to $17.5 million (a $1.5 million reduction). The bill also raises legislative counsel funding by $720,000 (from $4.88 million to $5.60 million) and makes minor adjustments to other state agency budgets. These changes directly affect renters and homeowners through rebate program funding levels, while state government operations are impacted through revised budget allocations.

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.