Adjusts Vermont earned income tax credit and child tax credit rates and excludes these credits from tax debt setoff.

This bill modifies the Vermont earned income tax credit and Vermont child tax credit rates. For individuals with one or more qualifying children, the credit is set at 55 percent. For those without qualifying children, the credit is 100 percent. The bill also ensures these credits are not subject to tax debt setoff, regardless of whether the individual or their children have a qualifying taxpayer identification number. The changes apply retroactively to taxable years beginning on and after January 1, 2025.

Adjusts Vermont earned income tax credit and child tax credit rates and excludes these credits from tax debt setoff.

This bill modifies the Vermont earned income tax credit and Vermont child tax credit rates. For individuals with one or more qualifying children, the credit is set at 55 percent. For those without qualifying children, the credit is 100 percent. The bill also ensures these credits are not subject to tax debt setoff, regardless of whether the individual or their children have a qualifying taxpayer identification number. The changes apply retroactively to taxable years beginning on and after January 1, 2025.