The bill amends several sections of Vermont tax law to enhance tax credits for residents, particularly focusing on families with children, individuals earning income, and veterans. It increases the age limit for qualifying children under the Vermont Child Tax Credit from five to six years old and allows eligible individuals to receive the credit without regard to federal child tax credit refund limitations. Additionally, the Earned Income Tax Credit is modified to provide a higher percentage for individuals without qualifying children, and it clarifies eligibility for those lacking taxpayer identification numbers.

Furthermore, the bill introduces a new Vermont Veteran Tax Credit, providing a refundable credit for residents who have served in the uniformed services, with specific income thresholds determining the amount of the credit. The income limits for exclusions on Social Security and Civil Service Retirement System income are also raised, allowing more residents to benefit from these tax provisions. The act is set to take effect retroactively on January 1, 2025, applying to taxable years beginning on or after that date.

Statutes affected:
As Introduced: 32-5813
As Passed By the Senate -- Official: 32-5813
As Passed By the Senate -- Unofficial: 32-5813
As Passed by Both House and Senate -- Official: 32-5813, 32-5830f, 32-5828b, 32-5830e
As Passed by Both House and Senate -- Unofficial: 32-5830f, 32-5828b, 32-5830e, 32-5813
As Enacted: 32-5830f, 32-5828b, 32-5830e, 32-5813