Witness Urges Vermont to End VEGI Sunset, Backing S.225

Frank Coffey, a representative of the Greater Burlington Industrial Corporation, told a Senate committee the Vermont Employment Growth Incentive (VEGI) has driven capital investment and job growth and should remain a permanent tool. "We very much need economic incentives," Coffey said, urging lawmakers to approve S.225 to remove the program’s sunset and eliminate the biennial uncertainty for employers.

Coffey, who described GBIC as one of the state’s regional development corporations, traced the program’s origins to state leaders and administration staff who designed VEGI with a ‘‘but‑for’’ test intended to ensure the state gained revenue from awards. He said the program has helped recruit and retain firms and encouraged projects that add higher‑wage jobs and capital investment.

Committee members cited local examples, including changes in Saint Albans, to underscore VEGI’s regional impacts. One committee member said repeatedly reauthorizing the program wastes legislative time and noted that repeal remains an option if the program fails to deliver.

Coffey acknowledged that VEGI activity slowed during the pandemic as companies delayed investments, but said interest is returning as firms plan capital projects. He asked the committee to remove the sunset provision because the recurring review cycle adds uncertainty that may deter employers considering investments in Vermont.

No formal action or vote was recorded at this meeting; committee members indicated they will take further testimony and follow-up as needed. The committee also discussed scheduling additional witnesses and staff briefings before advancing any bill.