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Manufacturers tell Ways & Means R&D tax changes and workforce supports are needed to compete
Summary
Vermont manufacturers and the Chamber told the House Ways & Means Committee that expanded R&D tax incentives and better coordination on permitting, energy fees, and workforce pipelines are critical to keeping export‑oriented firms in the state.
Chair Emily Kornheiser convened the House Ways & Means Committee to hear manufacturers and business groups outline how tax policy and regulatory barriers affect growth. "I'm Emily Kornheiser and chair of the House Ways and Means Committee," she said at the start of the session.
Amy Spear, president of the Vermont Chamber of Commerce, framed the briefing around the state’s recent tax work and the need to boost research and development. "Manufacturing remains one of the largest contributors to Vermont's economy at over 3.3 billion in GDP and about 7% of our economy," she told lawmakers, and argued R&D investment is a key lever to grow wages and long‑term competitiveness.
In a company‑level example, Bill Day, engineering manager at Chroma Technology in Bellows Falls, told the committee expanded R&D tax credits (Bill H933) would make hiring more feasible and encourage risk‑taking on higher‑reward innovation. "For Chroma specifically, these represent a meaningful increase in the motivation to continually invest in R&D," Day said, adding the proposed increases could support another full‑time hire.
Day described Chroma as a 100% employee‑owned advanced manufacturer that exceeded $40 million in revenue and employs 145 people. He said about half of Chroma’s workers live in New Hampshire and noted the company pays roughly $62,000 a year in the payroll tax; he also highlighted energy costs as a competitive headwind, estimating a roughly $500,000 annual electric bill with about $77,000 of that going to fees and taxes.
Committee members pressed on permitting and capital costs. Day recounted a building stabilization project that began as a roughly $3 million fix and was reduced to $1.5 million after pursuing state and federal grants. He said conflicting agency determinations about whether a ravine contained a regulated stream increased cost and delay, a theme members offered to help coordinate.
The discussion also covered workforce pipelines and local partnerships. Day said Chroma regularly runs internships with area high schools and colleges and that Keene State has developed a one‑year optical manufacturing program that feeds local jobs. He credited prior tax changes that use a single sales factor for improving the economics of export‑oriented manufacturers like Chroma.
The committee did not take any formal votes at the briefing. Members and business representatives said they will continue follow‑up on permitting coordination, energy fee burdens, and how recently advanced R&D tax changes are implemented for small and larger firms.
The hearing continued with a second panel on semiconductor cluster development led by the University of Vermont’s tech hub director.
