§ 5813. Statutory purposes

(a) The statutory purpose of the exemption for Vermont municipal bond income in subdivision 5811(21)(A)(i) of this title is to lower the cost of borrowing in order to finance State and municipal projects.

(b) The statutory purpose of the Vermont flat capital gains exclusion in subdivision 5811(21)(B)(ii) of this title is intended to increase savings and investment by making the effective tax rate on capital gains income lower than the effective tax rate on earned income while exempting a portion of the gain that may represent inflation. The 40-percent business capital gains exclusion mitigates the impact of one-time realizations in a progressive tax structure.

(c) [Repealed.]

(d) The statutory purpose of the Vermont credit for persons who are elderly or disabled in subsection 5822(d) of this title is to provide financial assistance to seniors and persons who are disabled with little tax-exempt retirement or disability income.

(e) The statutory purpose of the Vermont investment tax credit in subsection 5822(d) of this title is to encourage Vermont business investments by lowering the effective costs of certain activities.

(f) The statutory purpose of the Vermont farm income averaging credit in subdivision 5822(c)(2) of this title is to mitigate the adverse tax consequences of fluctuating farm incomes under a progressive tax structure and to provide stability to farm operations.

(g) The statutory purpose of the exemption for military pay in subdivisions 5823(a)(2) and (b)(3) of this title is to provide additional compensation for military personnel in recognition of their service to Vermont and to the country.

(h) The statutory purpose of the Vermont charitable housing credit in section 5830c of this title is to enable lower capital cost to certain affordable housing charities by restoring some of the forgone investment income through a tax credit to the investor.

(i) The statutory purpose of the Vermont affordable housing credit in section 5930u of this title is to increase the capital available to certain affordable housing projects for construction or rehabilitation by attracting up-front private investment.

(j) The statutory purpose of the Vermont qualified sale of a mobile home park credit in section 5828 of this title is to encourage sales of mobile home parks to a group composed of a majority of the mobile home park leaseholders, or to a nonprofit organization that represents such a group and, in doing so, to provide stability to the inhabitants of such mobile home parks.

(k) The statutory purpose of the Vermont higher education investment credit in section 5825a of this title is to encourage contributions to Vermont 529 plans that would not otherwise occur and to lower the cost of higher education for Vermont students and the Vermont taxpayers who financially support them.

(l) The statutory purpose of the Vermont entrepreneurs’ seed capital fund credit in section 5830b of this title is to provide incentives for investment in the Seed Capital Fund, ensuring it has sufficient capital to make equity investments in Vermont businesses.

(m) The statutory purpose of the Vermont historical rehabilitation tax credit in subsection 5930cc(a) of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.

(n) The statutory purpose of the Vermont façade improvement tax credit in subsection 5930cc(b) and sections 5930aa-5930ff of this title is to provide incentives to improve façades and rehabilitate historic properties in designated downtowns and village centers.

(o) The statutory purpose of the Vermont code improvement tax credit in subsection 5930cc(c) and sections 5930aa-5930ff of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.

(p) The statutory purpose of the Vermont research and development tax credit in section 5930ii of this title is to encourage business investment in research and development within Vermont and to attract and retain intellectual-property-based companies.

(q) The statutory purpose of the Vermont downtown tax credits in sections 5930n-5930r of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.

(r) The statutory purpose of the Vermont child and dependent care tax credit in section 5828c of this title is to provide cash relief to employees who incur dependent care expenses to enable them to remain in the workforce.

(s) The statutory purpose of the Vermont earned income tax credit in section 5828b of this title is to provide incentives for working families and individuals with low income and to offset the effect on these Vermonters of conventionally regressive taxes.

(t) The statutory purpose of the Vermont machinery and equipment tax credit in section 5930ll of this title is to provide an incentive to make a major, long-term capital investment in Vermont-based plants and property to ensure the continuation of in-state employment.

(u) The statutory purpose of the Vermont Employment Growth Incentive Program in chapter 105, subchapter 2 of this title is to generate net new revenue to the State by encouraging a business to add new payroll, create new jobs, and make new capital investments and sharing a portion of the revenue with the business.

(v) The statutory purpose of the Vermont Downtown and Village Center Program tax credits in section 5930cc of this title is to provide incentives to improve and rehabilitate historic properties in designated downtowns and village centers.

(w) The statutory purpose of the partial exemption of federally taxable benefits under the Social Security Act and certain retirement income in section 5830e of this title is to lessen the tax burden on Vermonters with low to moderate income who derive part of their income from Social Security benefits and certain retirement income.

(x) The statutory purpose of the charitable contribution credit in subdivision 5822(d)(3) of this title is to reduce the tax liability for Vermonters who contribute to charitable causes.

(y) The statutory purpose of the Vermont child tax credit in section 5830f of this title is to provide financial support to families with young children.

(z) The statutory purpose of the exclusion from income of student loan interest paid in subdivision 5811(21)(B)(vi) of this title is to lessen the financial impact of higher education debt on Vermonters. (Added 2013, No. 200 (Adj. Sess.), § 3; amended 2015, No. 157 (Adj. Sess.), § H.7, eff. Jan. 1, 2017; 2018, No. 11 (Sp. Sess.), § H.6, eff. Jan. 1, 2018; 2021, No. 105 (Adj. Sess.), § 533, eff. July 1, 2022; 2021, No. 138 (Adj. Sess.), § 8, eff. January 1, 2022.)