H 177 proposes replacing Vermont’s education property tax with a new education income tax starting in fiscal year 2027. It would tax all Vermont residents’ income (both homeowners and renters) using progressive rates based on income brackets, with rates adjusted per school district according to local education spending. The bill eliminates the homestead property tax benefit for homeowners while continuing the renter credit and updating property tax credits to provide broader relief for taxpayers by 2026. This directly affects all Vermont residents through their state income tax filings, shifting the funding mechanism for public education from property-based to income-based.
H 445 creates the Land Access and Opportunity Revolving Fund to support affordable housing for historically marginalized communities in Vermont. It is funded by a 1.5% income tax surcharge on earnings above $500,000 (repealed in 2031), administered by a new Land Access and Opportunity Board. The fund provides grants or loans for tenant-owned housing purchases, multi-unit renovations, cooperative housing development, and transitional housing projects with priority for marginalized groups. Projects must align with community resource integration, sustainable design, and support for those facing homelessness, disabilities, or justice system involvement.
This bill exempts U.S. military retirement income and survivor benefit payments from Vermont income tax for eligible residents. It adds these income types to Vermont’s list of excluded income in the tax code (specifically amending 32 V.S.A. § 5811), meaning military retirees and surviving spouses won’t pay state tax on these payments. The change applies retroactively to tax years beginning January 1, 2026. It directly affects Vermont taxpayers who receive military retirement or survivor benefits, providing them tax relief on this specific income source.
This bill (H 77) creates a new 8.75% income tax bracket for Vermont taxpayers earning above $237,950 annually (for married couples filing jointly), with corresponding thresholds for other filing statuses. It directly affects higher-income earners by increasing their tax rate on income above these thresholds. Revenue from this new bracket will be allocated as follows: 2% to the Education Fund, 1% to the Transportation Fund, and 1% to the Higher Education Endowment Trust Fund. The bill also updates annual inflation adjustments for tax brackets using the Consumer Price Index. The bill is currently pending in the Committee on Ways and Means.
This bill (H.115) would allow Vermont's Commissioner of Taxes to forgive income tax debt for individuals who lost income due to fraud. It directly affects victims of fraud who have unpaid tax liabilities tied to stolen funds. The key provision gives the Commissioner authority to waive these specific tax debts upon verification of fraud. The bill does not change tax rates or create new taxes, but provides targeted relief for fraud victims. It was recently referred to the Committee on Ways and Means for review.
This bill, titled "The Food Security Act," supports Vermont farms by reducing regulatory burdens and providing tax benefits. It exempts farms using direct soil injection for liquid manure application from seasonal bans, removes the requirement for a three-acre stormwater permit for compliant farms, and protects farms from nuisance or trespass claims under the right-to-farm law. The bill also exempts farm structures (like fences) and employee housing from municipal regulations, and excludes certain farm income and property sale profits from Vermont income tax. These changes directly affect farmers, farm businesses, and property transfers within agricultural operations.
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.
H 377 creates a refundable income tax credit for Vermont small businesses that advertise in qualifying local media outlets. Small businesses (defined as those with under $10 million in gross income and fewer than 100 full-time employees) can claim a 50% credit on advertising expenses, capped at $250 per year. To qualify, media outlets must meet specific criteria, including producing original local news content and meeting audience or publication requirements. The credit applies to advertising in local broadcast organizations or news organizations that serve Vermont communities, effective January 1, 2026.
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.
