Vermont

EARNED INCOME TAX CREDIT (EITC)

Rate (Fully-Refundable): 38% of the federal credit

Eligibility Requirements: All Vermont taxpayers who qualify for the federal credit are automatically eligible.

Latest Legislative Action: In June 2018, Vermont enacted a state budget for Fiscal Year 2019 that included an expansion of the state’s EITC from 32 to 36 percent of the federal credit.

Notes: During the 2013 legislative session, lawmakers considered a bill that would have increased the state’s EITC to 34% of the federal credit. However, the bill did not advance out of committee.

CHILD TAX CREDIT (CTC)

Rate (Fully-Refundable): $1,000 per qualifying child.

Eligibility Requirements: See Vermont’s tax information page for details.

Latest Legislative Action: On May 27, 2022, Governor Phil Scott signed legislation to enact a state-level Child Tax Credit worth $1,000 per child under 5 years old as part of a larger tax cut package. During the revision process, the committee discussed including a sunset provision. The condition was removed in the final version of the bill, making the tax credit a permanent benefit.

CHILD AND DEPENDENT CARE TAX CREDIT (CDCTC)

Vermont offers two versions of the state CDCTC with a more generous (and refundable) benefit for low-income families.

Credit for Child and Dependent Care

Rate (Fully-Refundable)72% of federal CDCTC3

Eligibility: All Vermont taxpayers who qualify for the federal credit are automatically eligible.

Low Income Child and Dependent Care Credit

Rate (Fully-Refundable): 50% of federal CDCTC4

Eligibility:

Note: Those that qualify for the low income CDCTC may not file for both versions of the credit.

Source:

1Vermont Earned Income Tax Credit Information, Vermont Department of Taxes
2House Bill 510, Office of Vermont Governor Phil Scott, 2022
3Tax Credits and Adjustments for Individuals
4Ibid.

For More State Information

Stephanie Yu, President & Executive Director
Public Assets Institute

publicassets.org
(802) 223-6677
steph@publicassets.org