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Gov. Phil Scott Vermont signs taxation-related legislation

November 10, 2020

Gov. Phil Scott Vermont signs taxation-related legislation

Significant Changes to Vermont Renter Rebate
The Renter Rebate has been changed to "Renter Credit." This change is effective Jan. 1, 2021, but applies to claims beginning in 2022. Along with the name change, the credit is designed to lessen the filing burden on both landlords and renters. Chiefly, the changes are:

a. Allowable rent amount will be based on the fair market rent for the renter's area, as
determined U.S. Department of Housing and Urban Development.
b. More than one renter per household will be allowed to claim a credit.
c. The claimant will no longer be required to obtain Form LC-142, Landlord Certificate.
The landlord will still be required to submit the Certificate to the Department, however.

You can see the all the changes to the Renter Rebate here.

Personal Income Tax: Reductions to Use Tax
The amounts in the Estimated Use Tax Table have been reduced. The change takes effect for tax year 2020 returns. The table is used when filing personal income tax. Furthermore, taxpayers with an AGI lower than $20,000 do not have to estimate use tax for purchases below $1000. The maximum amount a taxpayer may be required to pay for purchases below $1000 has been reduced from $500 to $150. The reductions reflect growing sales and use tax compliance among out of state and online retailers.

Use of 529 Plan Proceeds
In addition to the costs of attending a postsecondary education institution, 529 Plan proceeds may be used for expenses associated with a registered apprenticeship program. Funds may also be disbursed should a beneficiary become disabled or pass away. In either situation, the Vermont tax credit does not have to be paid back. This change took effect on Oct. 8, 2020, for expenses occurring from that date forward.

Administration of Economic Recovery Grants
The Department of Taxes and other State agencies were tasked by the General Assembly and the Governor with the distribution of several rounds of Economic Recovery Grants using money allocated to the State by the federal CARES Act.

The Department is very pleased to have been able to support the State's effort to assist Vermonters as they work to recover from the unprecedented challenges posed by the global health emergency.

As of Mon., Oct. 19, businesses that continue to have unmet needs due to COVID-19 related sales/revenue losses may apply for additional funding from one of two Expanded Economic Recovery Grant programs. Learn more about the expanded grants here.