Credit for Taxes Paid to Another State
You may be eligible for a credit if income you made is being taxed by Vermont and another state or Canadian province. To be eligible for this credit, the income must have been taxed by both Vermont and the other taxing jurisdiction.
For more information, please see our KB article here.
VT-IN-119 Tax Credits:
Vermont Higher Education Investment Credit (VHEIP)
This credit is available only for contributions to the 529 plan administered by Vermont Student Assistance Corporation. Supporting Documentation may be required, and includes the statement or certificate from VT Student Assistance Corporation or administrator of the plan.
You may be eligible for a tax credit on contributions made during calendar year 2022 to VHEIP. The tax credit equals 10% of the first $2,500 of contributions per beneficiary. For jointly filed returns, the tax credit equals 10% of the first $5,000 of contributions per beneficiary.
For additional information pertaining to the Vermont Higher Education Investment Credit, please see VASC.org
Charitable Housing Earned in 2022
A taxpayer making an investment in an eligible housing charity may receive a credit against Vermont income tax. The Commissioner of Housing and Community Development calculates the credit.
Qualified Sale of Mobile Home Park Earned in 2022
Please call the Department at 802-828-2865 if you believe that you qualify for this credit.
Research & Development Credit Earned in 2022
A taxpayer may receive a credit against Vermont income tax equal to 27% of the amount of Federal tax credit allowed in the taxable year for research and development expenditures. Any unused credit available may be carried forward up to ten years. The Department will publish annually the names of taxpayers who receive the credit.
Historic Rehabilitation Tax Credit - 32 V.S.A. § 5930cc(a)
The qualified applicant of a qualified historic rehabilitation project will be approved by the state board and can claim credit against the taxpayer’s state individual income tax, corporate income tax, or bank franchise or insurance premiums tax liability a credit of 10% of qualified rehabilitation expenditures as defined in the Internal Revenue Code, 26 U.S.C. § 47(c), properly chargeable to the federally certified rehabilitation.
Facade Improvement Tax Credit - 32 V.S.A. § 5930cc(b)
The qualified applicant of a qualified facade improvement project shall be entitled, upon the approval of the state board, to claim against the taxpayer’s state individual income tax, state corporate income tax, or bank franchise or insurance premiums tax liability a credit of 25% of qualified expenditures up to a maximum tax credit of $25,000.
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