Department of Economic Development


Our incentives take the form of direct cash incentives as with VEGI, tax credits for a variety of activities, and workforce training programs that can offset part of the cost of training and retraining your workforce.

Vermont Employment Growth Incentive (VEGI)

- 32 V.S.A. § 5930b
VEGI's purpose is to encourage job creation in Vermont by a Vermont company, a Vermont division of a company that plans to grow and expand in Vermont, a company considering locating a new business or division in state, or Vermont start-up business activity.

Vermont also offers an enhancement to the VEGI program, called “Green VEGI” for projects that will create jobs in certain environmental technology sectors. One of the eligible sectors is “clean" energy, including solar, wind, wave, hydro, geothermal, hydrogen, fuel cells etc. If the project in Vermont for which incentives are sought is primarily in the research, design, engineering, development, or manufacturing of fuel cells for energy efficient applications, the project could be eligible for this enhancement, which can increase the level of incentives by 20-25%.

Vermont Economic Progress Council Contact Information:
Fred Kenney, Executive Director
802.828.5256    Fax: 802.828.3383

Brownfield Redevelopment Grants

The Brownfields Revitalization Fund (BRF), administered by ACCD, provides eligible applicants with the ability to borrow up to $250,000 at attractive rates and terms for assessment, characterization and cleanup of contaminated sites.

For more information, contact:
Brett Long
Vermont Department of Economic, Housing and Community Development
1 National Life Drive, Montpelier, VT 05620-5001

Tax Credits

Research and Development Tax Credit
Vermont companies that make eligible research and development expenditures in Vermont can claim a tax credit equal to 27 percent of the federal tax credit allowed in the taxable year. Eligible research and development investments are the same as those defined by the federal R&D tax credit under Section 41(a) of the IRS Code, which are made in Vermont. If the tax credit cannot be applied in the year earned, the taxpayer can carry forward the credit for up to 10 years.

For more information, contact:
Vermont Department of Taxes
133 State Street
Montpelier, Vermont 05633
866-828-2865 (toll-free in Vermont)
802-828-2865 (local & out-of-state)

Work Opportunity Tax Credit
The Work Opportunity Tax Credit (WOTC) program offers federal tax credits to employers as an incentive to hire people in several specific target groups. WOTC helps both employers and targeted job seekers. Employers save as tax credits help defray payroll expenses. Job seekers qualifying as a member of one of the targeted groups gain an advantage in the job market.

Income Tax Paid to Another State or Canadian Province Credit
- 32 V.S.A. § 5825
Purpose: Prevent taxation of same income of Vermont residents by more than one taxing jurisdiction.
Credit Amount: Smaller of tax paid to other state or Canadian province or pro rata amount of the Vermont tax on the income from the other state or Canadian province income.
Credit Limitation: The smaller of the Vermont tax on the income or the other state or Canadian province tax. Cannot exceed Vermont tax liability.

For more information, contact:
Vermont Department of Taxes
133 State Street
Montpelier, Vermont 05633
866-828-2865 (toll-free in Vermont)
802-828-2865 (local & out-of-state)

Percentage of Federal Investment Tax Credit
Provides tax credits for energy, qualifying advanced coal, qualifying gasification, and qualifying advanced energy projects.  Credit is 24% of investment tax credit attributable to the Vermont-property portion of the investment.  More.

Workforce Training Programs
The Vermont Training Program promotes industrial expansion and encourages the creation and retention of jobs by providing training for new and existing businesses. Individually designed programs may include on-the-job; classroom; skill upgrade; or other specialized training which are mutually agreed upon between the State and employer. The program enables the Vermont workforce to develop the skills needed by Vermont’s many diversified employers.

For more information, contact:
John Young

The Workforce Employment Training Fund (WETF)

A state funded program that can offset the cost of workforce training for Vermont employers'. This program also helps the Vermont workforce develop the skills needed to meet employers needs in different sectors.  The program is administered by the Vermont Department of Labor.

Other Incentives:
Utility Cost Rate Reductions

For businesses in the Central Vermont Public Service territory, which encompasses most of Vermont, businesses can access the Economic Development Incentive Program (EDIP). This program offers incentive electrical rates for new or expanding industries that meet the eligibility criteria as outlined in the program. Economic Development Incentive Program (EDIP) credits will be available to customers who make complete application to the company for acceptance in the program and who meet all of the availability, applicability and eligibility criteria, as determined by the company. Credits are applicable to load determined to be eligible by the company.