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Vermont Research and Development Tax Credit

Vermont Research and Development Tax Credit

Supports Vermont businesses with innovation tax credits that reduce innovation costs.

Between cyclesVermont Department of TaxesUnited StatesFocused on Vermont

The Vermont Research and Development Tax Credit (32 V.S.A. § 5930ii), first enacted in 2009, allows any Vermont taxpayer who qualifies for the federal R&D credit under IRC §41 to claim an additional Vermont state credit equal to 27% of the federal credit allowed in that year, for R&D expenditures made within Vermont. The credit applies against Vermont personal income tax or corporate and business …

Provides Vermont taxpayers a state income tax credit equal to 27% of their federal IRC §41 R&D credit for qualifying research expenditures made within Vermont, with a pending 75% rate for small manufacturers.

CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.—
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.—

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Last verified: 22 Jul 2026Source: tax.vermont.gov