H.309 is a proposed bill that aims to establish a checkoff option for Vermont income taxpayers to contribute to the Vermont Housing and Conservation Trust Fund directly through their income tax returns. The bill introduces new legal language under 32 V.S.A. § 5862g, which outlines the process for taxpayers to designate funds for the Trust Fund. Taxpayers will have the opportunity to indicate their contribution on a form prescribed by the Commissioner of Taxes, and the designated amounts will be deducted from any refunds or overpayments. The bill also stipulates that if a taxpayer is later found to be ineligible for the designated amount, the Commissioner may assess the amount received, along with interest, for repayment.

Additionally, the bill includes provisions for the Commissioner of Taxes to inform taxpayers about the purpose of the Trust Fund and the contribution process. It clarifies that if the total payment made with a tax return is insufficient to cover both the tax owed and the designated contribution, the payment will first be applied to the tax owed, with any remaining balance going to the Trust Fund. The act is set to take effect on January 1, 2025, and will apply to taxable years beginning on or after that date.