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ACT NO. 67

(S.178)

Vermont Economic Development Authority; child care planning goal; Vermont Economic Progress Council; computer sales tax holiday; minimum wage;

This act amends the statutes regarding the Vermont Economic Development Authority (VEDA) and the Vermont Economic Progress Council (VEPC). The VEDA provisions increase the maximum contribution to the capitalization of the nonprofit corporation established to finance small business, create two entities for middle level venture capital investments, increases the bonding limit of VEDA’s debt service reserve fund, authorize interfund lending among VEDA programs, and increase loan limits on projects with an integral element of renewable generation of heat or electricity. The VEPC provisions make technical statutory corrections to clarify their application and improve reporting and recapture in conjunction with the Department of Taxes. A tax incentive for angel venture capital investment, a tax credit for new sustainable technology research and development, and a sustainable technology export tax credit are created.

This act provides for a sales tax holiday for computers sold to individuals for personal use if purchased between August 9 and August 11, 2003 and adds an additional goal of ensuring the availability of safe and affordable child care to those promoted by municipalities, regional planning commissions, and state agencies in their planning process.

In addition, this act provides for an increase in the minimum hourly wage to $6.75 on January 1, 2004, to $7.00 on January 1, 2005 with the basic wage rate for tipped employees increased to $3.58 on January 1, 2004 and $3.65 on January 1, 2005.

Effective Date:

(a) Provisions relating to VEDA take effect from passage.

(b) Provisions relating to VEPC processes and approvals take effect July 1, 2003, except that the clarifications relating to carry-forwards and credit allocations to S corporations take effect retroactively to January 1, 1998.

(c) Provisions relating to capital gain treatment of angel venture capital investments take effect July 1, 2003.

(d) Provisions related to the sustainable technology tax credits take effect upon passage and apply to tax years beginning January 1, 2003.

(e) Provisions creating a sales tax holiday for computer sales take effect July 1, 2003.