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VermontS.512025-2026 SessionSenateWALLET

An act relating to Vermont income tax exclusions and tax credits

Sponsored By: Ruth E Hardy (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Bigger Vermont EITC for low-income workers

The Vermont Earned Income Tax Credit equals 38% of your federal EITC if you claim qualifying children, and 100% if you do not. Part‑year residents get a prorated amount based on their Vermont income share. You can claim it even if you, your spouse, or your child lack a federal taxpayer ID. This applies to tax years starting January 1, 2025.

More Social Security untaxed for retirees

You can exclude more of your federally taxable Social Security on your Vermont return. Full exclusion applies at or below $55,000 AGI for single, head of household, surviving spouse, or married filing separately, and $70,000 for joint filers. The exclusion phases out between $55,000–$65,000 (single‑type) and $70,000–$80,000 (joint), with no exclusion at or above the top of each range. The first $10,000 of Civil Service Retirement System income follows the same income ranges. These rules apply to tax years starting January 1, 2025.

Refundable $1,000 credit for young kids

The law gives a refundable $1,000 credit for each qualifying child age six or younger. It follows the federal “qualifying child” test. You can claim it even if you, your spouse, or your child lack a federal taxpayer ID. If you lived in Vermont part of the year, the amount is prorated by your Vermont income share. It applies to tax years starting January 1, 2025.

Refundable $250 credit for veterans

Resident and part‑year resident veterans can claim a refundable $250 credit with proof of service. You get the full $250 if your federal AGI is $25,000 or less. The credit is cut by $5 for each $100 over $25,000 and ends at $30,000 AGI. This applies to tax years starting January 1, 2025.

Pick one retirement income exclusion

If you qualify for more than one Vermont retirement income exclusion in a year, you must choose only one. You cannot stack the Social Security exclusion with other listed retirement exclusions. Exception: if you qualify for the military retirement or survivor exclusion, you may also claim that one. This rule applies to tax years starting January 1, 2025.

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Sponsors & Cosponsors

Sponsor

  • Ruth E Hardy

    Democratic • Senate

Cosponsors

  • Alison Clarkson

    Democratic • Senate

  • David H Weeks

    Republican • Senate

  • Joseph "Joe" D Major

    Democratic • Senate

  • Martine Larocque L Gulick

    Democratic • Senate

  • Rebecca "Becca" E White

    Democratic • Senate

  • Robert W Norris

    Republican • Senate

  • Tanya C Vyhovsky

    Democrat/Progressive • Senate

  • Wendy K Harrison

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 170 • No: 2

Senate vote • 6/16/2025

Committee of Conference report adopted on roll call Passed -- Needed 14 of 28 to Pass -- Yeas = 28, Nays = 0

Yes: 28 • No: 0 • Other: 1

House vote • 5/6/2025

Which was agreed to on a Roll Call Passed -- Needed 72 of 144 to Pass -- Yeas = 142, Nays = 2

Yes: 142 • No: 2 • Other: 1

Actions Timeline

  1. Senate Message: Signed by Governor June 25, 2025

    6/16/2025House

  2. Signed by Governor on June 25, 2025

    6/16/2025Senate

  3. Delivered to Governor on June 20, 2025

    6/16/2025Senate

  4. Senate Message: Report of Committee of Conference adopted

    6/16/2025House

  5. Rules suspended & ordered delivered to Governor forthwith, on motion of Senator Lyons

    6/16/2025Senate

  6. As passed by Senate and House

    6/16/2025Senate

  7. Title amended

    6/16/2025Senate

  8. Committee of Conference report adopted on roll call Passed -- Needed 14 of 28 to Pass -- Yeas = 28, Nays = 0

    6/16/2025Senate

  9. Roll Call, Requested by Sen. Collamore

    6/16/2025Senate

  10. Committee of Conference report submitted by Senator Cummings for Committee, text

    6/16/2025Senate

  11. Unfinished Business/Committee of Conference Report

    6/16/2025Senate

  12. Unfinished Business/Committee of Conference Report

    6/13/2025Senate

  13. Unfinished Business/Committee of Conference Report

    6/11/2025Senate

  14. Unfinished Business/Committee of Conference Report

    6/9/2025Senate

  15. Committee of Conference report

    6/6/2025Senate

  16. Committee of Conference report

    6/3/2025Senate

  17. Entered on Notice Calendar

    6/3/2025Senate

  18. House message: House adopted Conference Committee report

    5/31/2025Senate

  19. Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney

    5/30/2025House

  20. Committee of Conference report adopted (Senate bill)

    5/30/2025House

  21. Rules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney

    5/30/2025House

  22. House message: House appointed Conference Committee members

    5/13/2025Senate

  23. Speaker appointed Reps. Kornheiser of Brattleboro, Kimbell of Woodstock, and Canfield of Fair Haven as members of the Committee of Conference on the part of the House

    5/13/2025House

  24. Senate Message: House proposal of amendment not concurred in and Committee of Conference appointed

    5/9/2025House

  25. Committee of Conference appointed: Senators Cummings, Chittenden, and Brock

    5/9/2025Senate

Bill Text

  • As Enacted (ACT 71)

    7/2/2025

    PDF

  • As Passed by Both Chambers

    6/16/2025

    PDF

  • As Passed by Both Chambers (Unofficial)

    6/16/2025

    PDF

  • House Proposal of Amendment

    5/8/2025

    PDF

  • House Proposal of Amendment (Unofficial)

    5/8/2025

    PDF

  • As Passed by the Senate

    3/21/2025

    PDF

  • As Passed by the Senate (Unofficial)

    3/21/2025

    PDF

  • As Introduced

    2/5/2025

    PDF

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