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Committee rejects in straw poll an amendment to opt Vermont into federal scholarship tax-credit program
Summary
Members debated replacing sections of H933 to let the governor provide a list of scholarship-granting organizations under 26 USC ' 25F so Vermont taxpayers could use a federal education scholarship tax credit. Concerns about federal rules not yet issued and whether the governor should control tax opt-in led the committee to reject the amendment in a straw poll.
A member asked the Ways & Means Committee to replace sections 18 and 19 of H933 to create a Vermont opt-in for a federal qualified elementary and secondary education scholarship tax credit under 26 U.S.C. ' 25F.
The proposed language would have the governor annually submit a list of scholarship-granting organizations to the U.S. Treasury so Vermont taxpayers could claim the federal credit. The sponsor framed the amendment as an equity measure, saying the change would allow students from households at or below 300% of area median income to access additional educational supports.
Committee members repeatedly raised two central concerns: first, whether the governor (rather than the legislature) should hold authority to opt the state into a tax-credit program, and second, that the Internal Revenue Service had not yet promulgated proposed or final rules for the federal program. "IRS has not issued even proposed rules at this point to review," one member said, cautioning the committee against adopting state-level language that could conflict with future federal rules.
Legislative counsel advised that Vermont could opt in without additional language, but that H933 currently contains provisions that would opt Vermont out. The sponsor argued that adding the drafted language would ensure students could participate without delay if federal rules allowed it.
After extended questioning and debate about federal preemption and the allocation of tax-policy authority between the legislature and the governor, the committee held a straw poll to determine whether to find the amendment favorable. The committee's straw poll rejected the amendment; the transcript records the result as a committee-level straw poll rather than a roll-call or final floor action.
Why it matters: The amendment would change how Vermont interfaces with a new federal education-tax-credit program; the committee declined to move the change forward while federal rules remain uncertain and questions about executive versus legislative authority persist.
What comes next: The House or Senate may revisit the matter in other vehicles; the Senate was reported to be considering related language in its own bill.
