The bill S.327 seeks to bolster economic development in Vermont by increasing the annual funding for the downtown and village center tax credit program from $3,000,000 to $5,000,000. It allocates additional resources to support small businesses, including $300,000 for legal services from the Vermont Law and Graduate School, $689,000 for business advising from the Vermont Small Business Development Center, and $594,000 for microbusiness development through the Vermont Community Action Partnerships. The bill also establishes a task force to study business development in the state and repeals the prospective repeal of the Vermont Employment Growth Incentive (VEGI) program, ensuring ongoing support for businesses.

Key provisions include enhanced incentives for employee-owned businesses, allowing the Council to consider applications from these entities under specific conditions, with a potential share of new revenue growth set at 90 percent. The bill outlines a method for calculating qualifying payroll based on the background growth rate in the relevant business sector. It emphasizes the goal of fostering locally owned and controlled businesses that provide higher wages and benefits to employees. The act is scheduled to take effect on July 1, 2026, with certain provisions taking effect upon passage.

Statutes affected:
As Introduced: 32-151, 32-11J, 32-105