Bill > H0090

This bill modifies the Vermont Earned Income Tax Credit (EITC) and Vermont Child Tax Credit by adjusting the percentage of credit available and protecting these credits from tax debt setoff. Specifically, the bill changes the state EITC from a flat 38% to a tiered percentage: 55% for individuals with one or more qualifying children, and 100% for individuals with no qualifying children. The bill also adds a provision that prevents these tax credits from being seized or offset to pay tax debts in Vermont or other states. This means that even if a taxpayer owes back taxes, they can still receive the full amount of these credits. The changes will apply retroactively to the 2025 tax year, providing additional financial support to low and moderate-income families by ensuring they receive the full benefit of these tax credits. The bill aims to provide more robust financial assistance to working individuals and families, particularly those with children, by increasing the state's support through these tax credits.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.90