Senate Economic Development bill targets small businesses, downtown tax credit and a Vermont–Ireland trade commission

Sen. Allison Clarkson, chair of the Senate Economic Development, Housing and General Affairs Committee, briefed the Senate Appropriations Committee on S.122 on March 20 and described the bill as “investing in what works.”

Clarkson said the package focuses on expanding support for small businesses, increasing the cap on the Vermont Downtown and Village Center Tax Credit program from $3 million to $5 million and directing roughly $3.9 million in appropriations for programs that, she said, have strong returns on investment. ‘‘This is one of our most successful programs … leveraging an astonishing amount of money,’’ Clarkson said of the downtown tax-credit program.

Key spending items she highlighted include modest appropriations for the Small Business Development Center (to expand no-fee advising), the Vermont Professionals of Color Network, a microbusiness initiative run through community action agencies, and more funding to support the creative economy and film/media workforce. The bill would also create the Vermont–Ireland Trade Commission, to be housed in the treasurer’s office, and a task force to study the feasibility of a statewide convention center and major performance venue.

Fiscal context: Patrick Terickson of the Joint Fiscal Office told the committee S.122 appropriates about $3.9 million in total and noted differences versus the governor’s recommendations. He highlighted items that would create ongoing base obligations (for example, funding increases to the Small Business Development Center and an Office of Economic Opportunity microbusiness program) and identified per-diem costs for two commissions/task forces that are not yet appropriated in the bill.

Committee discussion covered whether per diems for the convention-center task force and the Vermont–Ireland Trade Commission should be removed from the bill and handled separately through the budget process; members also sought contingent-language so sections would take effect only if the corresponding appropriations are included in the fiscal-year 2026 budget.

Ending: The committee voted to move the bill forward with amendments to make specific sections contingent on forthcoming appropriations and to strike legislative per diem language for two panels, allowing the policy elements to stand while reserving funding decisions for the budget process.