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