Vermont § 5830f - Vermont child tax credit

§ 5830f. Vermont child tax credit

• (a) A resident individual or part-year resident individual who is entitled to a child
  tax credit under the laws of the United States or who would have been entitled to
  a child tax credit under the laws of the United States but for the fact that the individual
  or the individual’s spouse does not have a taxpayer identification number shall be
  entitled to a refundable credit against the tax imposed by section 5822 of this title for the taxable year. The total credit per taxable year shall be in the amount of
  $1,000.00 per qualifying child, as defined under 26 U.S.C. § 152(c) but notwithstanding the taxpayer identification number requirements under 26 U.S.C. § 24(e) and (h)(7), who is six years of age or younger as of the close of the calendar year
  in which the taxable year of the taxpayer begins. For a part-year resident individual,
  the amount of the credit shall be multiplied by the percentage that the individual’s
  income that is earned or received during the period of the individual’s residency
  in this State bears to the individual’s total income. An otherwise eligible individual
  shall be entitled to the credit under this section without regard for the laws of
  the United States pertaining to the amount of federal child tax credit that may be
  refunded. (b) Notwithstanding subsection (a) of this section, the amount of the credit per child
  under this section shall be reduced, but not below zero, by $20.00 for each $1,000.00,
  or fraction thereof, by which the individual’s adjusted gross income exceeds $125,000.00,
  irrespective of the individual’s filing status. For purposes of this subsection, spouses
  filing jointly shall be considered an individual. (c) Notwithstanding any provision of law to the contrary, the refundable credit and its
  payment authorized under this section shall be treated in the same manner as the federal
  Earned Income Tax Credit and shall not be considered as assets, income, or resources
  to the same extent the credit and its payment would be disregarded pursuant to 26 U.S.C. § 6409 and the general welfare doctrine for purposes of determining eligibility for benefits
  or assistance, or the amount or extent of those benefits or assistance, under any
  State or local program, including programs established under 33 V.S.A. § 3512 and chapters 11, 17, 19, 21, 25, and 26. This subsection shall only apply to the
  extent that it does not conflict with federal law relating to the benefit or assistance
  program and that any required federal approval or waiver is first obtained for that
  program. [Subsection (d) effective when contingency met.] (d)(1) The Commissioner shall establish a program to make advance quarterly payments of the
  credit under this section during the calendar year that, in the aggregate, equal 50
  percent of the annual amount of the credit allowed to each individual for the taxable
  year. The quarterly payments made to an individual during the calendar year shall
  be in equal amounts, except that the Commissioner may modify the quarterly amount
  upon receipt of any information furnished by the individual that allows the Commissioner
  to determine the annual amount. The remaining 50 percent of the annual amount of the
  credit allowed to each individual shall be determined at the time of filing a Vermont
  personal income tax return for the taxable year pursuant to section 5861 of this title. (2) The Commissioner shall provide a process by which individuals may elect not to receive
  advance payments under this subsection. (Added 2021, No. 138 (Adj. Sess.), § 1, eff. January 1, 2022; amended 2023, No. 72, § 16, eff. January 1, 2023; 2023, No. 72, § 18; 2025, No. 71, § 1, eff. January 1, 2025.)