H.510: Supporting Vermont families with a child tax credit: At session’s end, May 12th the Vermont House passed to H.510 by an overwhelming 141–4 roll-call vote. Building on the success of the federal CTC, H.510 creates a new Vermont Child Tax Credit. It will give $1,000 per year to parents and guardians for every qualifying child five years of age or younger. The bill increases the Child and Dependent Care Credit to 72% of federal CDCC, and increases our Vermont Earned Income Tax Credit to 38% of federal EITC — making us the highest state EITC in the country.
The bill creates a deduction for all interest paid on student loans, increases income thresholds for existing Social Security benefits exclusion by $5,000, and creates new exclusions for $10,000 of retirement income from military, Civil Service Retirement System, or other states’ noncontributory retirement systems. It increases funding for three programs: an existing housing tax credit to increase access to manufactured home purchase and replacement, the Aid for the Aged, Blind, and Disabled program, and the Child Care Worker Retention Grant Program.
This bill is a big win for Vermont families. We’re creating a clear and significant message in our tax code that Vermont is a place that supports families and workers. We understand what it means to parent, to carry student loan debt, and to care for aging parents. We understand that government, and our tax structure, can be a force for good.
Also included in the final version of H. 510. is a deduction for those Vermont filers with student loan interest debt payments. A schedule depending on Adjusted Gross Income would determine the portion of the payments deductible.
Better still in H. 510 is the INCOME EXCLUSION of Social Security fund payments to Vermonters. For those married, filing jointly ALL SS income payments are EXCLUDED from Vermont taxation, if: AGIncome is LESS than $65,000, This benefit will be widely available to Vermonters as this eligibility triggers is at an AGI ABOVE the average household two person adjusted gross income.
We are taking care of our SENIORS. The is in answer to the call to make it possible for those Vermonters who have made Vermont home to stay here. And to enjoy the retirement to which each is entitled.