State Tax Credits: Expand Vermont Tax Credits to Help Vermonters Meet Their Basic Needs The Child Tax Credit (CTC) and Earned Income Tax Credit (EITC) help Vermont families with low incomes fill the gap between income and expenses by providing cash when they file their taxes. During the pandemic, temporary expansions of federal tax credits helped bring 10,000 Vermonters out of poverty. Unfortunately these credits have ended, leaving many Vermonters worse off. Increasing Vermont tax credits, and expanding eligibility and access to them, helps people cover day-to-day basic necessities. Vermont has been a leader in state-level anti-poverty tax credits, but restrictions on who qualifies as well as systemic barriers to access leave out many Vermont families who would benefit from the credits. The Alliance supports the efforts of Public Assets Institute and other advocates to expand the Vermont EITC from matching 38% of the federal EITC to 55%, and to expand access to the Vermont EITC and CTC for families with low income who need them most. These changes will reduce poverty, improve family financial stability, and allow Vermonters to meet needs specific to their families. Update: H.701, introduced in in January and referred to the House Ways and Means Committee, proposes to increase the Vermont EITC to 55% for families with children. This change would increase the state EITC by $679 for a family with one child and $1,263 for a family with three children. The bill was introduced with bi-partisan support. Unfortunately, the Committee has not taken any action on the bill, and no formal action is likely before the end of the session. The Coalition continues to advocate for tax credit increases, while also working to ensure EITC and CTC access for all Vermont residents, including residents without social security numbers or individual taxpayer identification numbers (ITINs) who are newly eligible for the credits. The Coalition is also advocating for simplified filing forms, securing Vermont’s participation in the IRS Direct File pilot program, and continued state support of community partners that help people file their taxes for no charge. | |
| | | |  | Alliance Legislative Agenda: Weekly Issue Spotlight – Updates and ECDL Prep – 4/1 This year the Alliance has hosted virtual Weekly Issue Spotlights, which have provided an opportunity for participants to hear in-depth updates on issues on the Alliance’s Legislative Agenda. The final session of the series will be held Monday, April 1, from 3:30 to 4:15 pm, and will provide an update on the status of all 10 issues on the Legislative Agenda. Led by Matt Levin from the Alliance, this session is a great opportunity to learn more about the issues as we prepare for Early Childhood Day at the Legislature on April 10. We hope you can join us for the discussion. | | | | | |  | Register for ECDL '24! Join us in person for the 30th Annual Early Childhood Day at the Legislature (ECDL) on Wednesday, April 10, 2024, in at the Capitol Plaza Hotel in Montpelier. The issues on our 2024 Legislative Agenda will play central roles at this year’s ECDL, and we are filling the Day's schedule with informative sessions that cover all of our issues and more. Visit the Alliance website for more information and to register! | | | | | | | |
