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Searching 2025-2026 Session

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The Vermont Statutes Online

The Statutes below include the actions of the 2025 session of the General Assembly.

NOTE
: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.

Title 32 : Taxation and Finance

Chapter 105 : Vermont Employment Growth Incentive Program

Subchapter 002 : VERMONT EMPLOYMENT GROWTH INCENTIVE PROGRAM

(Cite as: 32 V.S.A. § 3337)
  • § 3337. Earning an incentive

    (a) Earning an incentive; installment payments.

    (1) A business with an approved application earns the incentive specified for an award year if, within the applicable time period provided in this section, the business:

    (A) maintains or exceeds its base payroll and base employment;

    (B) meets or exceeds the payroll performance requirement specified for the award year; and

    (C) meets or exceeds the jobs performance requirement specified for the award year or the capital investment performance requirement specified for the award year, or both.

    (2) A business that earns an incentive specified for an award year is eligible to receive an installment payment for the year in which it earns the incentive and for each of the next four years in which the business:

    (A) maintains or exceeds its base payroll and base employment;

    (B) maintains or exceeds the payroll performance requirement specified for the award year; and

    (C) if the business earns an incentive by meeting or exceeding the jobs performance target specified for the award year, maintains or exceeds the jobs performance requirement specified for the award year.

    (b) Award year one.

    (1) For award year one, a business has from the date it commences its proposed economic activity through December 31 of that year, plus two additional years, to meet the performance requirements specified for award year one.

    (2) A business that does not meet the performance requirements specified for award year one within this period becomes ineligible to earn incentives for the award year and for all remaining award years in the award period.

    (c) Award years two and three.

    (1) For award year two and award year three, beginning on January 1 of the award year, a business has three years to meet the performance requirements specified for the award year.

    (2) A business that does not meet the performance requirements specified for award year two or for award year three within three years becomes ineligible to earn incentives for the award year and for all remaining award years in the award period.

    (d) Extending the earning period in award years one and two. Notwithstanding subsections (b)-(c) of this section:

    (1) Upon request, the Council may extend the period to earn an incentive for award year one or award year two if it determines:

    (A) a business did not earn the incentive for the award year due to facts or circumstances beyond its control; and

    (B) there is a reasonable likelihood the business will earn the incentive within the extended period.

    (2) The Council may extend the period to earn an incentive:

    (A) for award year one, by two years, reviewed annually; or

    (B) for award year two, by one year.

    (3) If the Council extends the period to earn an incentive, it shall recalculate the value of the incentive using the cost-benefit model and shall adjust the amount of the incentive as is necessary to account for the extension.

    (e) Award year four.

    (1) Beginning on January 1 of award year four, a business that remains eligible to earn incentives has two years to meet the performance requirements specified for award year four.

    (2) A business that does not meet the performance requirements specified for award year four within two years becomes ineligible to earn incentives for award year four and award year five.

    (f) Award year five.

    (1) Beginning on January 1 of award year five, a business that remains eligible to earn incentives has one year to meet the performance requirements specified for award year five.

    (2) A business that does not meet the performance requirements specified for award year five by the end of that award year becomes ineligible to earn the incentive specified for that award year.

    (g) Carrying forward growth that exceeds targets. Carrying forward growth that exceeds targets. If a business exceeds one or more of the payroll performance requirement, the jobs performance requirement, or the capital investment performance requirement specified for an award year, the business may apply the excess payroll, excess jobs, and excess capital investment toward the performance requirement specified for a future award year, provided that the business maintains the excess payroll, excess jobs, or excess capital investment into the future award year. (Added 2015, No. 157 (Adj. Sess.), § H.1, eff. Jan. 1, 2017.)

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