Vermont Ways & Means reviews H.43 tax package; officials cite $13.5M annual cost for full proposal

Montpelier — The Vermont House Ways & Means Committee spent its April 22 meeting reviewing H.43, a multi-part measure that would expand several state tax credits and raise income thresholds for partial exemptions of retirement income, including Social Security and certain federal pensions.

Kirby Keaton, legislative council, told the committee H.43 “does three things”: it raises the age eligibility for the Vermont Child Tax Credit from 5 to 6; it increases the state earned-income tax credit (EITC) for filers without qualifying children to a higher percentage of the federal credit; and it raises the adjusted gross income (AGI) thresholds used to calculate the partial exemption for Social Security and some retirement income (including certain federal retirement and military pensions).

The package overlaps with S.51 from the Senate, which Keaton and committee members said carries an unpaid-caregiver credit and may be combined with H.43 language as the bills move forward. Keaton and staff noted the bills have not completed crossover and will require further action if the House wants the provisions to reach the Senate.

Patrick Titterton of the Joint Fiscal Office presented fiscal estimates and context. The office’s consensus…