The bill H.90, introduced by Representatives Canfield and Waszazak, aims to amend the Vermont earned income tax credit and the Vermont child tax credit. It 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 establishes that the changes will take effect retroactively on January 1, 2025, applying to taxable years beginning on or after that date. This retroactive application is intended to provide immediate relief to eligible taxpayers once the bill is enacted. Overall, H.90 seeks to enhance the financial support provided to low- and moderate-income families through the earned income and child tax credits while protecting these credits from being seized for tax debts.

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