Bill > H0438

This bill amends Vermont's sales and use tax statute to expand tax exemptions for building materials and supplies used in construction projects, specifically adding priority housing projects to the list of entities eligible for this exemption. Under the proposed change, sales of building materials and supplies for constructing a "priority housing project" (as defined in 10 V.S.A. § 6001) would be exempt from sales and use taxes, similar to existing exemptions for government-owned buildings, public works, and certain nonprofit organizations' structures. The bill requires that the vendor maintain detailed records of such sales, including the sales price, purchaser's name, sale date, and an exemption certificate number. To provide clarity on what qualifies, the bill defines "building materials and supplies" broadly, encompassing all materials consumed or physically incorporated during construction, reconstruction, alteration, remodeling, or repair of a building or structure. The tax exemption will take effect on July 1, 2025, potentially incentivizing the development of priority housing by reducing construction costs.

Budget and Finance

https://legislature.vermont.gov/bill/status/2026/H.438