Ways & Means committee reviews bill packaging child tax, EITC and retirement-exemption changes

The Ways & Means Committee considered a committee bill that packages three proposed changes to Vermont income tax credits and partial retirement-income exemptions that were part of the administration’s miscellaneous tax bill, H.135.

The bill would (1) raise the maximum age for the Vermont Child Tax Credit from children age 5 and younger to children age 6 and younger; (2) change the state treatment of the Earned Income Tax Credit (EITC) so that individuals without qualifying children would receive 100% of the state EITC percentage rather than the current, lower percent; and (3) increase partial-exemption thresholds for retirement and Social Security income by $5,000 (for example, changing a $50,000 threshold to $55,000 and the phase-out range from 50–60k to 55–65k).

Kirby (staff member), who presented the draft committee bill, said the measure “takes 3 of the changes to income tax credits from H.135 and puts them into a committee bill by themselves.” Kirby explained the bill includes clarifying language directing the Department of Taxes “when considering…