Vermont S 51: An act relating to the persons authorized to make contributions to candidates and political parties and to political committee names

Bill Text

No. 71 Page 1 of 10
2025

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No. 71. An act relating to Vermont income tax exclusions and tax credits.
(S.51)
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 32 V.S.A. § 5830f is amended to read:
§ 5830f. VERMONT CHILD TAX CREDIT
(a) A resident individual or part-year resident individual who is entitled to a
child tax credit under the laws of the United States or who would have been
entitled to a child tax credit under the laws of the United States but for the fact
that the individual or the individual’s spouse does not have a taxpayer
identification number shall be entitled to a refundable credit against the tax
imposed by section 5822 of this title for the taxable year. The total credit per
taxable year shall be in the amount of $1,000.00 per qualifying child, as
defined under 26 U.S.C. § 152(c) but notwithstanding the taxpayer
identification number requirements under 26 U.S.C. § 24(e) and (h)(7), who is
five six years of age or younger as of the close of the calendar year in which
the taxable year of the taxpayer begins. For a part-year resident individual, the
amount of the credit shall be multiplied by the percentage that the individual’s
income that is earned or received during the period of the individual’s
residency in this State bears to the individual’s total income. An otherwise
eligible individual shall be entitled to the credit under this section without
regard for the laws of the United States pertaining to the amount of federal
child tax credit that may be refunded.

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Sec. 2. 32 V.S.A. § 5828b is amended to read:
§ 5828b. EARNED INCOME TAX CREDIT
(a) A resident individual or part-year resident individual who is entitled to
an earned income tax credit granted under the laws of the United States or who
would have been entitled to an earned income tax credit under the laws of the
United States but for the fact that the individual, the individual’s spouse, or one
or more of the individual’s children does not have a qualifying taxpayer
identification number shall be entitled to a credit against the tax imposed for
each year by section 5822 of this title. The credit shall be for an individual
who claims one or more qualifying children 38 percent or for an individual
who does not claim one or more qualifying children 100 percent of the earned
income tax credit granted to the individual under the laws of the United States
or that would have been granted to the individual under the laws of the United
States but for the fact that the individual, the individual’s spouse, or one or
more of the individual’s children does not have a qualifying taxpayer
identification number, multiplied by the percentage that the individual’s
income that is earned or received during the period of the individual’s
residency in this State bears to the individual’s total income. A resident
individual or part-year resident individual who would have been entitled to or
granted an earned income tax credit under the laws of the United States but for
the fact that the individual, the individual’s spouse, or one or more of the

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individual’s children does not have a qualifying taxpayer identification number
shall be entitled to a credit under this section.
* * *
Sec. 3. 32 V.S.A. § 5830e is amended to read:
§ 5830e. RETIREMENT INCOME; SOCIAL SECURITY INCOME
(a) Social Security income. The portion of federally taxable Social
Security benefits excluded from taxable income under subdivision
5811(21)(B)(iv) of this chapter shall be as follows:
(1) For taxpayers whose filing status is single, married filing separately,
head of household, or surviving spouse:
(A) If the federal adjusted gross income of the taxpayer is less than or
equal to $50,000.00 $55,000.00, all federally taxable benefits received under
the federal Social Security Act shall be excluded.
(B) If the federal adjusted gross income of the taxpayer is greater than
$50,000.00 $55,000.00 but less than $60,000.00 $65,000.00, the percentage of
federally taxable benefits received under the Social Security Act to be
excluded shall be proportional to the amount of the taxpayer’s federal adjusted
gross income over $50,000.00 $55,000.00, determined by:
(i) subtracting the federal adjusted gross income of the taxpayer
from $60,000.00 $65,000.00;
(ii) dividing the value under subdivision (i) of this subdivision (B)
by $10,000.00; and

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(iii) multiplying the value under subdivision (ii) of this subdivision
(B) by the federally taxable benefits received under the Social Security Act.
(C) If the federal adjusted gross income of the taxpayer is equal to or
greater than $60,000.00 $65,000.00, no amount of the federally taxable
benefits received under the Social Security Act shall be excluded under this
section.
(2) For taxpayers whose filing status is married filing jointly:
(A) If the federal adjusted gross