Department of Economic Development

Incentives

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
fred@thinkvermont.com

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:
Kiersten Bourgeois
Vermont Department of Economic, Housing and Community Development
1 National Life Drive, Montpelier, VT 05620-5001
802-828-5220
kiersten.bourgeois@state.vt.us

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 30 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)

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:
Beth Demers, Director
802-828-1175
beth.demers@state.vt.us

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.

Science, Technology, Engineering and Math (STEM) Award

Are you a new hire in a Science, Technology, Engineering or Math position? Vermont's STEM incentive may pay you up to $7500!

What is the STEM incentive?
The Science, Technology, Engineering and Math award will pay new hires at Vermont companies $1,500 cash annually for each year they are employed, up to five years. The incentive goes directly to the individual.

Who may apply?
Any individual recently hired by a Vermont company in good standing with the State of Vermont in an eligible occupation may apply.

What are the eligibility requirements?

  • Have graduated from an accredited educational institution with an Associate's Degree or higher;
  • Been conferred the degree not more than 18 months before the date of hire by a qualified employer; New hires must apply within 30 days of their start date.
  • Be employed by a qualified employer for a position in Vermont that meets the STEM definition and for which the total annual compensation (including the value of benefits including health and dental insurance, FICA payments, company pension and 401(k) contributions and other direct compensation paid to the employee) is $50,000 or greater
  • Have outstanding student loans with a lending institution.
  • The incentive is taxable income.

What occupations are eligible?
The list of eligible positions (pdf) include occupations like engineers, technicians, and more.  If you feel your position qualifies but is not on the list you may request a review for eligibility. Only positions that pay $50,000 annually in salary and benefits qualify. Benefits include health and dental insurance, FICA payments, Social Security payments, company pension and 401(k) contributions and other direct compensation paid to the employee. 

What if I change employers?
As long as you remain in an eligible occupation with a Vermont company in good standing with the state, and meet compensation requirements the STEM award is transferable.

How can I apply? Apply online  or download the application  You may also call Ken Horseman in the Agency of Commerce and Community Development at 802-828-5236 or email him at ken@thinkvermont.com for assistance.

NOTE:  Awards are limited and subject to availability of funds appropriated by the legislature.  To confirm availability of funds contact Ken Horseman.