Ways & Means reviews S.51 competing tax proposals: Senate caregiver credit vs. House package of child, EITC, retirement and veterans changes

At a Ways & Means briefing, staff reviewed competing versions of S.51 that would change Vermont tax credits and exemptions, highlighting different policy priorities and budget impacts.

The Senate-passed S.51 as described to the committee would create a refundable unpaid caregiver tax credit of up to $1,000 for resident or part-year resident individuals who provide at least 20 hours per week of uncompensated care. The credit would be prorated by month, require that the care recipient be related by blood, marriage or adoption and need assistance with activities of daily living or have a medical diagnosis, and would include an AGI-based phaseout that begins for individuals with adjusted gross income over $25,000. Staff said the Department of Taxes could require documentation, including a form from a medical professional, to check…