Bill > H0308

This bill proposes to expand the sales and use tax exemption for building materials and supplies in Vermont by temporarily removing existing limitations on such exemptions. Specifically, the bill will create a broad exemption for all building materials and supplies used in construction, reconstruction, alteration, remodeling, or repair of buildings or structures, with the exemption explicitly excluding blueprints. The exemption will take effect on July 1, 2025, and will remain in place for three years. After this period (on July 1, 2028), the law will revert to its previous version, which limited the tax exemption to building materials used in manufacturing facilities, specifically for purchases exceeding $1,000,000 within any three consecutive years and used exclusively for manufacturing tangible personal property for sale. The bill also modifies the statutory purpose of the exemption, initially stating it is to reduce construction costs in Vermont, and then later changing back to providing incentives for downtown district revitalization. This temporary, broad tax exemption is intended to potentially stimulate construction and reduce building costs in the state during the specified period.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.308