Child Tax Credit Update: Vermont Becomes 10th State to Create Its Own Package of Tax Cuts

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Governor Phil Scott of Vermont has signed a new tax cut package that includes a statewide Child Tax Credit (CTC) for children 5 and under in households earning 125,000 $ or less, VTDigger.org reported.

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The tax credit will be phased out at a rate of $20 for every $1,000 earned over that threshold, according to a summary of the law posted on legislature.vermont.gov. The credit is fully refundable.

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Bill 138 (Bill H.510) also allows for a fully refundable child and dependent credit of 72% of the federal child and dependent credit given to the taxpayer and increases the earned income tax credit to 38% of the amount granted by the federal government. It also includes tax relief for student borrowers, retirees and veterans.

The final version of the $40 million bill allocates $32 million to pay for the new statewide CTC, which lawmakers say will help more than 30,000 Vermont children.

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In a June 3 statement, Scott called the bill “a step in the right direction,” noting that previous proposals, including a package worth nearly $50 million, “would have helped a more wide range of taxpayers”.

About the Author

Dawn Allcot is a full-time freelance writer and content marketer with interests in finance, e-commerce, technology, and real estate. His long list of publishing credits includes Bankrate, Lending Tree and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology and entertainment website. She lives in Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten and three lizards of different sizes and personalities – plus her two children and her husband. Find her on Twitter, @DawnAllcot.

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