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. The Vermont Child Tax Credit is adjusted to provide a refundable credit of $1,000 per qualifying child who is six years old or younger, expanding eligibility to individuals without taxpayer identification numbers. The Earned Income Tax Credit is also modified, allowing individuals who would have qualified for the federal credit but lack identification numbers to receive a state credit based on their residency income. Additionally, the income thresholds for excluding federally taxable Social Security and Civil Service Retirement System benefits are increased, and new provisions are added to exclude U.S. military retirement and survivor benefit income from taxable income based on adjusted gross income levels.

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 legislation is designed to provide financial support to low- and moderate-income families and veterans, ensuring that those who may not meet federal requirements still receive state-level benefits. 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