Governor's budget includes $13.5 million individual tax‑relief package; expands child credit, EITC, Social Security and military pay exemptions

Tax Commissioner Craig Volley told the committee that the governor's recommended budget, released yesterday, includes a $13.5 million package of individual tax relief intended to ease costs for working families and retirees.

The package would expand four existing credits or exemptions, Volley said: raise the eligible age for Vermont's refundable child tax credit from 5 to 6; increase the state earned income tax credit (EITC) for filers without dependents from 38% of the federal credit to 100%; raise the thresholds for the state's Social Security income tax exemption by $5,000 for single and joint filers; and further exempt military retirement pay and survivor benefits. Volley said the proposals build on programs already on the books and aim to reduce poverty, support workforce participation and help seniors retain more income.

“The governor's budget proposes this 13 and a half million dollar…