| 1 | 1 | | BILL AS INTRODUCED H.76 |
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| 2 | 2 | | 2025 Page 1 of 2 |
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| 4 | 4 | | |
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| 5 | 5 | | VT LEG #379039 v.1 |
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| 6 | 6 | | H.76 1 |
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| 7 | 7 | | Introduced by Representatives Hango of Berkshire, Bartley of Fairfax, Birong 2 |
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| 8 | 8 | | of Vergennes, Branagan of Georgia, Christie of Hartford, Coffin 3 |
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| 9 | 9 | | of Cavendish, Demar of Enosburgh, Galfetti of Barre Town, 4 |
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| 10 | 10 | | Goslant of Northfield, Gregoire of Fairfield, Higley of Lowell, 5 |
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| 11 | 11 | | Hooper of Burlington, Kascenska of Burke, Keyser of Rutland 6 |
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| 12 | 12 | | City, Laroche of Franklin, McFaun of Barre Town, Morgan, L. 7 |
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| 13 | 13 | | of Milton, Morgan, M. of Milton, North of Ferrisburgh, Noyes 8 |
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| 14 | 14 | | of Wolcott, Page of Newport City, Pinsonault of Dorset, 9 |
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| 15 | 15 | | Southworth of Walden, and Tagliavia of Corinth 10 |
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| 16 | 16 | | Referred to Committee on 11 |
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| 17 | 17 | | Date: 12 |
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| 18 | 18 | | Subject: Taxation; income tax; National Guard 13 |
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| 19 | 19 | | Statement of purpose of bill as introduced: This bill proposes to exempt the 14 |
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| 20 | 20 | | State active duty subsistence and quarters allowance paid to members of the 15 |
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| 21 | 21 | | National Guard from Vermont personal income tax. 16 |
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| 22 | 22 | | An act relating to an income tax exemption for National Guard active duty 17 |
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| 23 | 23 | | subsistence and quarters allowance 18 BILL AS INTRODUCED H.76 |
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| 24 | 24 | | 2025 Page 2 of 2 |
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| 26 | 26 | | |
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| 27 | 27 | | VT LEG #379039 v.1 |
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| 28 | 28 | | It is hereby enacted by the General Assembly of the State of Vermont: 1 |
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| 29 | 29 | | Sec. 1. 32 V.S.A. § 5823(a) is amended to read: 2 |
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| 30 | 30 | | (a) For any taxable year, the Vermont income of a resident individual is the 3 |
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| 31 | 31 | | adjusted gross income of the individual for that taxable year, and the Vermont 4 |
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| 32 | 32 | | income of a resident estate or trust is its gross income for the taxable year, less: 5 |
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| 33 | 33 | | * * * 6 |
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| 34 | 34 | | (2) military pay for full-time active duty with the U.S. Armed Services 7 |
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| 35 | 35 | | earned outside the State; and the first $2,000.00 of military pay for unit 8 |
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| 36 | 36 | | training in the State to National Guard and U.S. Reserve personnel for whom 9 |
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| 37 | 37 | | the Adjutant and Inspector General or Reserve Component Commander 10 |
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| 38 | 38 | | certifies that the taxpayer completed all unit training of his or her unit during 11 |
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| 39 | 39 | | the calendar year, and who has a federal adjusted gross income of less than 12 |
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| 40 | 40 | | $50,000.00; and State active duty subsistence and quarters allowance paid to 13 |
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| 41 | 41 | | members of the National Guard under 20 V.S.A. § 603; 14 |
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| 42 | 42 | | * * * 15 |
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| 43 | 43 | | Sec. 2. EFFECTIVE DATE 16 |
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| 44 | 44 | | Notwithstanding 1 V.S.A. § 214, this act shall take effect on January 1, 17 |
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| 45 | 45 | | 2026 and apply retroactively to taxable years beginning on and after January 1, 18 |
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| 46 | 46 | | 2025. 19 |
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