Vermont Business Magazine Today, the Vermont House of Representatives voted 142-2 to pass S.51, supporting Vermont’s families, workers, retirees, and military veterans.
"This bill is about honoring Vermonters who give so much — parents, veterans, and retirees — and ensuring our tax system recognizes their incredible impact on all Vermont communities," said Vermont Speaker of the House, Representative Jill Krowinski. "We’re delivering on our promise to strengthen working families, support Older Vermonters on Social Security, and recognize the dedication and sacrifices made by our veterans."
S.51 includes an expanded child tax credit, increases the earned income tax credit from 38% to 100%, increases income thresholds for retirees receiving Social Security and other pension income, a tax exemption on military retirement, and a new tax credit for low-income veterans. These changes aim to provide meaningful financial relief to thousands of Vermonters and reflect the Legislature’s ongoing commitment to economic equity.
“All of S.51 will serve to attract more military retirees to come to Vermont during their retirement years. We hope they will live, seek employment, have their children attend our schools, and participate in our communities’ activities and events,” said Representative Bill Canfield, Vice Chair of the House Committee on Ways and Means. “We are happy with the improvements to the child tax credit, earned income tax credit, and the creation of the Veterans tax credit which all put money back into the pockets of more Vermont citizens.”
The legislation, among other things, provides assistance to:
- Low-income households without children, often living paycheck to paycheck, who continue to be taxed even when they are at or below the poverty line.
- Households with children who have the highest household expenses in their lives and the lowest household income.
- Seniors with low and moderate fixed incomes who are impacted significantly from rising prices.
- Military retirees who have served our state and our country in uniform.
- Military retiree survivors who continue to live in Vermont and be members of our communities.
- Veterans who are struggling to make ends meet, individuals who don’t often get the recognition or respect that they have earned.
“With this legislation, we are helping low-income Vermonters who need financial help by expanding tax relief, and bringing Vermont into line with how other states exempt military retirement pay,” said Rep. Charlie Kimbell, Ranking Member of the House Committee on Ways and Means. “It is the right thing to do.”
Statement from Minority Leader Pattie McCoy on Passage of Tax Relief Package:
“Today, the House of Representatives passed S.51, an important tax relief package that expands the earned income tax credit, child tax credit and income tax exemption for social security recipients. The bill also significantly expands the tax exemption for military retirement and survivor benefits, while creating a refundable tax credit for low-income veterans.
“Governor Scott proposed this tax relief package in his budget in January, and House Republicans have been by his side as we push for tax relief for already overburdened Vermonters. For too long, the Legislature has spent more time focusing on how to increase revenue, instead of finding ways to allow Vermonters to keep more of what they earned. Without Vermonters making their voices heard in November, this would not have been possible.
“Governor Scott and House Republicans, for nearly a decade, have pushed for Vermont to join the vast majority of other states in fully exempting military retirement benefits from the state income tax. Although this doesn’t go all the way, it takes us a huge step forward and fully exempts this income for the vast majority of recipients in Vermont.
“We have much more work to do to make Vermont more affordable and reduce the tax burden Vermonters face, but residents can be assured House Republicans and Governor Scott will continue to fight for relief and a more affordable Vermont.”
The resolution now moves to the Vermont Senate for final approval.
To find more information about the tax relief package, please visit the legislative website.
5.6.2025
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