H.90 is a bill introduced by Representatives Canfield and Waszazak that aims to amend the Vermont earned income tax credit and the Vermont child tax credit. The bill proposes to change the percentage of the earned income tax credit from a fixed 38 percent to a variable percentage based on the number of qualifying children claimed by the individual. Specifically, individuals claiming one or more qualifying children will receive 55 percent of the federal earned income tax credit, while those without qualifying children will receive 100 percent. Additionally, the bill includes provisions to exclude these credits from tax debt setoff, ensuring that they cannot be used to offset any tax debts owed by the individual.

The bill also includes a retroactive effective date, stating that the changes will apply to taxable years beginning on or after January 1, 2025. This means that the new percentages and the exclusion from tax debt setoff will be in effect for tax filings starting in 2025, providing financial relief to eligible individuals and families in Vermont.

Statutes affected:
As Introduced: 32-5828b, 32-5830f