Vermont Statutes Title 32 Sec. 5825a
Terms Used In Vermont Statutes Title 32 Sec. 5825a
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Commissioner: means the Commissioner of Taxes appointed under section 3101 of this title or any officer or employee of the Department authorized by the Commissioner (directly or indirectly by one or more redelegations of authority) to perform the functions mentioned or described in this chapter. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
- Taxable year: means the calendar year, or the fiscal year ending during the calendar year, with respect to which a tax is imposed under this chapter and, in the case of a return filed with respect to a fractional part of a year, the period with respect to which the return is filed. See
- Taxpayer: means a person obligated to file a return with or pay or remit any amount to this State under this chapter. See
§ 5825a. Credit for Vermont Higher Education Investment Plan contributions
(a) A taxpayer of this State, including each spouse filing a joint return, shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of 10 percent of the first $2,500.00 per beneficiary, contributed by the taxpayer during the taxable year to a Vermont Higher Education Investment Plan account under 16 Vt. Stat. Ann. chapter 87, subchapter 7, provided the account is provided directly by the Vermont Student Assistance Corporation to the participant.
(b) A taxpayer who has received a credit under subsection (a) of this section shall repay to the Commissioner 10 percent of any distribution from a higher education investment plan account, up to a maximum of the total credits received by the taxpayer under subsection (a) of this section minus any amount of repayment of such credits in prior tax years except when the distribution:
(1) is used exclusively for costs of attendance at an approved postsecondary education institution as defined in 16 V.S.A. § 2822(6);
(2) is used for a qualifying expense associated with a registered apprenticeship program pursuant to 26 U.S.C. § 529(c)(8);
(3) is made after the death of the beneficiary or after the beneficiary becomes disabled pursuant to subdivisions (q)(2)(C) and (m)(7) of 26 U.S.C. § 72; or
(4) is used for qualified higher education expense loan repayment pursuant to 26 U.S.C. § 529(c)(9), provided the loan being repaid was used exclusively for costs of attendance at an approved postsecondary education institution as defined in 16 V.S.A. § 2822(6).
(c) Repayments under subsection (b) of this section shall be subject to assessment, notice, penalty and interest, collection, and other administration in the same manner as an income tax under this chapter. (Added 2003, No. 65, § 2, eff. for tax years beginning on and after Jan. 1, 2004; amended 2005, No. 207 (Adj. Sess.), § 6, eff. May 31, 2006; 2019, No. 51, § 19, eff. Jan. 1, 2019; 2019, No. 154 (Adj. Sess.), § E.605.3, eff. Oct. 2, 2020; 2019, No. 175 (Adj. Sess.), § 19, eff. Oct. 8, 2020; 2021, No. 20, § 269; 2021, No. 179 (Adj. Sess.), § 18, eff. January 1, 2022.)