The State of Vermont offers an economic incentive for business recruitment, growth and expansion. The Vermont Employment Growth Incentive (VEGI) program can provide a cash payment, based on the revenue return generated to the State by prospective qualifying job and payroll creation and capital investments, to businesses that have been authorized to earn the incentive and who then meet performance requirements.
The VEGI program provides incentives from the State of Vermont to businesses to encourage prospective economic activity in Vermont that is beyond an applicant’s “organic” or background growth and that would not occur, would not occur in Vermont, or would occur in a significantly different and less desirable manner, except for the incentive provided. The economic activity can be generated by a Vermont company or a Vermont division adding new qualifying employees, a company that is considering Vermont to locate a new business or division, or start-up business activity. Once authorized, the incentives can only be earned and installments paid if performance requirements are met and maintained.
Authorization for the incentives occurs through application to the Vermont Economic Progress Council, who must determine if the company and project meet statutory approval requirements.
If a company is authorized, the total amount of incentive available is determined by a cost-benefit model analysis that calculates the revenue benefits and costs to the State, based on the qualifying jobs, payroll, and capital investments projected by the applicant, for up to five years following approval.