Bill > H0135

This bill makes several technical and administrative changes to Vermont tax laws. It updates the state's tax code to conform to federal tax laws as of December 31, 2024, and makes several key modifications to tax regulations. The bill requires spouses to file joint Vermont personal income tax returns when they file jointly on their federal return, expands the child tax credit to children six years old and younger, and modifies the earned income tax credit to provide different percentages based on whether the taxpayer claims qualifying children. The legislation also increases the threshold for excluding Social Security and Civil Service Retirement System income from state taxes, adds U.S. military retirement income as a tax exclusion, and broadens the definition of tobacco products to include nicotine-based products. Additionally, the bill increases the annual tax credit for Downtown and Village Center development from $3 million to $5 million and extends the flooding abatement reimbursement program for municipalities, allowing reimbursement for state education property taxes abated due to flood damage through December 31, 2024. The bill also adjusts the pay for property valuation hearing officers, changing their compensation to an hourly rate with a cost-of-living adjustment. Most provisions will take effect retroactively or on specific dates in 2025.