Vermont Research and Development Tax Credit

Vermont's Research and Development Tax Credit sits with the Vermont Department of Taxes and reduces state income tax for taxpayers that also qualify for the federal R&D credit. It is a statutory offset for eligible research and development expenditures made in Vermont, and the state publishes an annual claimant list each January. The credit equals 27% of the federal Section 41 credit allowed for Vermont-sited expenditures. It applies against personal income tax or business and corporate income tax, carries forward for 10 years, and is claimed on the normal return rather than through a separate application. The statute was added in 2009 and amended in 2013, which makes it one of the older state R&D credits still in regular use. It is a practical fit for Vermont-based manufacturers, software firms, biotech companies, and other taxpayers with qualifying R&D spend. Large multinationals and smaller local claimants both use it, so the real test is documentation: the business needs eligible Vermont expenditures and a federal R&D credit position strong enough to support the state claim.

Each grant below is a distinct funding opportunity with its own eligibility, scope, and deliverables.