Vermont Increases Corporate Minimum Tax

Recent legislation increases the $250 current minimum tax for corporations, other than small farm corporations and digital business entities, to $500 for corporations with gross receipts over $2 million and to $750 for corporations with gross receipts over $5 million, beginning with the 2012 tax year.

The minimum tax for corporations, other than small farm corporations and digital business entities, is $250. Beginning with the 2012 tax year, the minimum tax is increased to $500 for corporations with gross receipts over $2 million and to $750 for corporations with gross receipts over $5 million. The minimum tax for small farm corporations is $75. A “small farm corporation” is a corporation that was organized for the purpose of farming, that is owned during the taxable year solely by active participants in that farm business, and that receives less than $100,000 during the taxable year in gross receipts from that farm corporation, exclusive of income from forest crops.

Questions?  Call Davis & Hodgdon Associates CPAs at 802.878.1963 or email [email protected].  Our CPAs have been assisting Vermont businesses for more than 20 years.