Elevate Vermont
Elevate Vermont is a technology-based economic development program designed to catalyze growth in Vermont’s high tech business sector through increased access to targeted technical and research assistance.
Opportunity Zones
The Tax Cuts and Jobs Act of 2017 included the creation of a new tax-incentive aimed at increasing private investment in low income census tracts. Investors in these zones will receive preferential tax treatment when they invest in a newly created “Opportunity Fund.” After undergoing a process that was recognized as a best practice, Governor Phil Scott designated 25 census tracts in 17 communities as Opportunity Zones .
Investment Capital
Investments are needed at many stages in a business growth. These investments can take different forms, starting with "friends and family" and moving to more institutional investors. Click on the "Investment Capital" link above to learn more about the many resources available in Vermont. Capital sources from outside Vermont and foreign sources are also active in Vermont.
Vermont State Tax Incentives
The Manufacturing Machinery and Equipment Tax Credit allows some businesses to not pay the Vermont Sales and Use Tax on machinery and equipment.
The Vermont Research and Development Tax Credit is available to businesses that take the federal Research and Development Tax Credit. The Vermont credit can be equal to 27% of the federal credit allowed in the taxable year.
In Corporate Tax Changes effective in 2023, Vermont adopts single sales factor apportionment eliminating income tax consequences for building expansions and/or adding jobs for companies that produce goods in Vermont and export them.
Vermont is fortunate to have a variety of capital and incentive programs. Capital sources range from angel investing to an array of debt sources at the Vermont Economic Development Authority and elsewhere. Our incentive programs have been rated amongst the best. Professionals at the Agency of Commerce and Community Development and our Regional Development Corporations are ready to help you identify the best source for your need and support you through eligibility and applications processes.
State Small Business Credit Initiative (SSBCI). In 2022, the State of Vermont received $57.9 million in federal American Rescue Plan Act (ARPA) funding to provide more access to capital for Vermont entrepreneurs and small business startups. DED is partnering with the Vermont Economic Development Authority (VEDA) to divide those SSBCI funds evenly between two programs:
- Venture Capital Program – this program will allocate nearly $29 million to venture capital that will focus on seed fund investments; leveraging accelerator programs to make small investments in rural, pre-seed stage companies; and investments in high-growth, technology innovation companies in the healthcare sector. To see the Request for Proposal for participation in the Venture Capital Program, click here.
- Loan Participation Program – this program will allocate nearly $29 million to a loan participation program, administered by VEDA, which will leverage private funds to help small businesses grow, create good paying jobs, and serve underserved markets.
For more on the Venture Capital Program and Loan Participation Program, visit VEDA’s website.
Financing and capital to grow your business - Next to having a solid business plan, having the financial support to make your plan a reality is what will help make a business successful. Depending on where your business is located, what industry sector it’s in and what your specific financial needs are, we help provide access to funding sources that include federal and state programs, as well as an array of loans and venture capital.
Grants and innovation opportunities - There are special R&D programs just for small businesses - the SBIR program and the STTR program and many more R&D programs in the federal government. These programs ensure that the nation's small, high-tech, innovative businesses are a significant part of the federal government's research and development efforts.