The Vermont Statutes Online

Title 32: Taxation and Finance

Chapter 151: INCOME TAXES

Sub-Chapter 011E: Economic Advancement Tax Incentives

32 V.S.A. § 5930c. Economic advancement payroll tax credit



[Section 5930c repealed effective January 1, 2017, see note set out below.]§ 5930c. Economic advancement payroll tax credit

A person, upon obtaining the approval of the Vermont Economic Progress Council pursuant to section 5930a of this title, may receive a credit against income tax liability imposed under this chapter equal to a percentage of its increased payroll costs, defined as salaries and wages, excluding any payroll costs attributed to an employee with more than 10 percent ownership interest, including attribution of ownership interests of the employee's spouse, parents, spouse's parents, siblings, and children, within the State of Vermont in the tax year for which the credit is claimed above its costs of salaries and wages from the preceding tax year according to the following schedule:

(1) A person reporting less than $10 million in annual sales in the tax year that the credit is claimed may receive a credit against its income tax liability equal to 10 percent of its increased costs of salaries and wages costs in the applicable tax year.

(2) A person that reports annual sales of $10 million or more, but less than $20 million, in the tax year that the credit is claimed may receive a credit against its income tax liability of six to nine percent of its increased costs of salaries and wages in the applicable tax year based on the following proportional, graduated scale:

(A) a nine-percent tax credit for reported sales of $10 million through $12,500,000.00;

(B) an eight-percent tax credit for reported sales of more than $12,500,000.00 through $15 million;

(C) a seven-percent tax credit for reported sales of more than $15 million through $17,500,000.00; and

(D) a six-percent tax credit for reported sales of more than $17,500,000.00 through $20 million.

(3) A person reporting more than $20 million in annual sales in the tax year that the credit is claimed may receive a credit against its income tax equal to five percent of its increased costs of salaries and wages in the applicable tax year.

(4) For a person in its first year of operation, its costs of salaries and wages in the preceding tax year shall be deemed to have been zero. (Added 1997, No. 71 (Adj. Sess.), § 48, eff. March 11, 1998; amended 2003, No. 67, § 16; 2005, No. 184 (Adj. Sess.), § 4, eff. Jan. 1, 2017.)