Bill > H0483

This bill proposes three key tax-related changes to benefit Vermont residents. First, it expands the Vermont Child Tax Credit by increasing the eligible age for children from five to six years old, and allows individuals to claim the full $1,000 per qualifying child credit even if they do not meet certain federal taxpayer identification requirements. Second, the bill enhances the Earned Income Tax Credit (EITC) by increasing the credit for individuals with qualifying children to 38 percent of the federal credit and introducing a new 100 percent credit for individuals without qualifying children. Third, the bill raises the income thresholds for the partial exemption of Social Security benefits and retirement income, increasing the income levels at which individuals can exclude a portion or all of their Social Security and Civil Service Retirement System income from state taxes. For example, for single filers, the income threshold for full exclusion of Social Security benefits increases from $50,000 to $55,000, and for married couples filing jointly, from $65,000 to $70,000. These changes are designed to provide additional financial support to families, low-income workers, and retirees in Vermont, and will take effect retroactively on January 1, 2025, applying to taxable years beginning on or after that date.

Budget and Finance

Ways and Means (H)

https://legislature.vermont.gov/bill/status/2026/H.483