Vermont Department of Taxes

Administers Vermont tax credits and incentives that support business investment and local economic development.

The Vermont Department of Taxes administers Vermont's state tax laws, including a small portfolio of business tax credits designed to encourage economic activity in the state. Its primary instrument relevant to innovative companies is the Vermont Research and Development Tax Credit (32 V.S.A. § 5930ii), which offsets state corporate or personal income tax for companies that already qualify for the federal R&D credit under IRC §41.

This is a tax authority, not a grant-making body. There are no competitive calls, no deadlines, and no award decisions. Eligible businesses claim the credit automatically on their Vermont income tax return. The Department publishes an annual transparency report (RP-1298 series) listing all claimants. Other credits it administers include affordable housing, downtown rehabilitation, investment, and machinery/equipment incentives — none of which are competitive grants.