Bill > S0051

This bill makes several modifications to Vermont's income tax provisions across multiple areas. First, it changes the Vermont Child Tax Credit by raising the age qualification from five to six years old and allows individuals to claim the credit regardless of federal tax credit refund rules. Second, it expands the Earned Income Tax Credit by removing taxpayer identification number restrictions and creating different credit percentages for individuals with and without qualifying children (38% for those with children, 100% for those without). Third, the bill increases income thresholds for excluding certain types of retirement income, including Social Security benefits, Civil Service Retirement System income, and U.S. military retirement income, effectively making these exclusions available to more taxpayers by raising the income limits. Additionally, the bill introduces a new Vermont Veteran Tax Credit, which provides a refundable tax credit of up to $250 for veterans with federal adjusted gross income under $25,000, with the credit amount phasing out for those earning between $25,000 and $30,000. The changes are set to take effect retroactively on January 1, 2025, and will apply to taxable years beginning on or after that date, aiming to provide additional financial support to various groups including families with young children, low-income workers, retirees, and veterans.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/S.51