All Roll Calls
Yes: 170 • No: 2
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 earned income credits for workers
For tax years starting January 1, 2025, or later, Vermont expands its refundable earned income tax credit. Workers claiming qualifying children get 38% of their federal earned income credit; workers claiming none get 100%. You also qualify when only a missing qualifying taxpayer ID for you, your spouse, or a child blocks federal eligibility. Part-year residents get a reduced credit based on income earned or received during Vermont residency divided by total income.
Child tax credit now covers six-year-olds
For tax years starting January 1, 2025, or later, Vermont's refundable child credit covers children age six or younger at year-end. This expands the age limit from five and provides $1,000 per child who meets federal qualifying-child rules. You must qualify for the federal child credit, except when only your or your spouse's missing taxpayer ID prevents eligibility. Vermont's credit is refundable regardless of federal refund rules, so it can pay you money even when you owe no tax. Part-year residents get a reduced credit based on income earned or received during Vermont residency divided by total income.
New tax relief for military retirees
For tax years starting January 1, 2025, or later, Vermont provides a military retirement income exclusion. It covers federally taxable U.S. military retirement income and military survivor benefits received by eligible beneficiaries. You can exclude the full amount when federal adjusted gross income is $125,000 or less. The exclusion shrinks proportionally above $125,000 and ends at $175,000.
Higher retirement tax breaks, limited choices
For tax years starting January 1, 2025, or later, Vermont raises retirement tax-break income limits by $5,000. The breaks cover federally taxable Social Security benefits and the first $10,000 of Civil Service Retirement System income. Qualifying other contributory pensions follow the civil service rules and existing eligibility requirements. Single, separate, head-of-household, and surviving-spouse filers get the full break through $55,000 in federal adjusted gross income. The break shrinks proportionally above $55,000 and ends at $65,000; joint filers use $70,000 and $80,000 instead. You can choose only one of these nonmilitary exclusions each year, but can add an eligible military retirement or survivor-benefit exclusion.
New refundable credit for low-income veterans
For tax years starting January 1, 2025, or later, eligible veterans get a new refundable Vermont tax credit. You must be a resident or part-year resident with uniformed service verified by a discharge or other active-duty separation record. The credit is $250 when federal adjusted gross income is $25,000 or less, even if you owe no tax. Above $25,000, it falls by $5 for each $100 of additional income; no credit applies at $30,000 or more.
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
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
Senate Message: Signed by Governor June 25, 2025
6/16/2025SenateSigned by Governor on June 25, 2025
6/16/2025SenateDelivered to Governor on June 20, 2025
6/16/2025SenateSenate Message: Report of Committee of Conference adopted
6/16/2025SenateRules suspended & ordered delivered to Governor forthwith, on motion of Senator Lyons
6/16/2025SenateAs passed by Senate and House
6/16/2025SenateTitle amended
6/16/2025SenateCommittee of Conference report adopted on roll call Passed -- Needed 14 of 28 to Pass -- Yeas = 28, Nays = 0
6/16/2025SenateRoll Call, Requested by Sen. Collamore
6/16/2025SenateCommittee of Conference report submitted by Senator Cummings for Committee, text
6/16/2025SenateUnfinished Business/Committee of Conference Report
6/16/2025SenateUnfinished Business/Committee of Conference Report
6/13/2025SenateUnfinished Business/Committee of Conference Report
6/11/2025SenateUnfinished Business/Committee of Conference Report
6/9/2025SenateCommittee of Conference report
6/6/2025SenateCommittee of Conference report
6/3/2025SenateEntered on Notice Calendar
6/3/2025SenateHouse message: House adopted Conference Committee report
5/31/2025HouseRules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney
5/30/2025HouseCommittee of Conference report adopted (Senate bill)
5/30/2025HouseRules suspended and taken up for immediate consideration, pending entry on Notice Calendar, as moved by Rep. McCoy of Poultney
5/30/2025HouseHouse message: House appointed Conference Committee members
5/13/2025HouseSpeaker 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
5/13/2025HouseSenate Message: House proposal of amendment not concurred in and Committee of Conference appointed
5/9/2025SenateCommittee of Conference appointed: Senators Cummings, Chittenden, and Brock
5/9/2025Senate
Bill Text
As Enacted (ACT 71)Opens in a new window
7/2/2025
As Passed by Both Chambers
6/16/2025
As Passed by Both Chambers (Unofficial)
6/16/2025
House Proposal of Amendment
5/8/2025
House Proposal of Amendment (Unofficial)
5/8/2025
As Passed by the Senate
3/21/2025
As Passed by the Senate (Unofficial)
3/21/2025
As Introduced
2/5/2025
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