Officials urge making VEGI permanent, citing program accountability and growth
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Summary
PEPC staff urged repeal of the VEGI sunset and highlighted program oversight, claimed lifecycle impacts (2007–2023) including $1.2 billion in new capital investment and more than 10,000 jobs; committee debated permanence versus statutory sunsets and asked for further review of enhanced incentives.
At the Feb. 4 committee meeting, PEPC/VEGI staff described the Vermont Employment Growth Incentive (VEGI) program and urged legislators to repeal its statutory sunset. The presenter summarized the program’s application and verification process: businesses submit five-year job and payroll projections, PEPC reviews applications, and the Vermont Department of Taxes verifies payroll outcomes before incentive payments are made over time.
On program outcomes, the presenter said, "over the life of the VEGI program from 2007 to 2023, the VEGI program has had $1,200,000,000 in new capital investment. We've created over 10,000 new jobs, $613,000,000 in new qualifying payroll, and we've paid $41,500,000 in incentives through 2023." The presenter also cited a leverage figure: "For every dollar that is on VEGI ... at least an additional $42.70 has been generated in payroll and capital investment."
Staff argued repeal would provide certainty to businesses and allow PEPC to focus on program improvements rather than frequent legislative renewals. Committee members questioned whether a permanent repeal removes an automatic statutory review mechanism and discussed whether multi-year sunsets could force ongoing program evaluation. Members asked staff to provide additional data on wage growth, leverage calculations, and the provenance of enhancement provisions before taking action on Sections 10–11 of S.327.
No formal action on the VEGI sunset or enhanced incentives occurred at the hearing; staff said they will provide follow-up information and suggested inviting representatives of the Vermont Employees Ownership Council to brief the committee on employee-ownership enhancements.