| 1 | 1 | | BILL AS INTRODUCED H.249 |
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| 2 | 2 | | 2025 Page 1 of 3 |
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| 4 | 4 | | |
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| 5 | 5 | | VT LEG #379045 v.1 |
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| 6 | 6 | | H.249 1 |
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| 7 | 7 | | Introduced by Representatives Taylor of Milton, Bartley of Fairfax, Burditt of 2 |
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| 8 | 8 | | West Rutland, Coffin of Cavendish, Dobrovich of 3 |
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| 9 | 9 | | Williamstown, Galfetti of Barre Town, Hango of Berkshire, 4 |
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| 10 | 10 | | Higley of Lowell, Laroche of Franklin, Luneau of St. Albans 5 |
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| 11 | 11 | | City, Micklus of Milton, Morgan, L. of Milton, Morgan, M. of 6 |
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| 12 | 12 | | Milton, Morrissey of Bennington, Page of Newport City, 7 |
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| 13 | 13 | | Pinsonault of Dorset, Powers of Waterford, Priestley of 8 |
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| 14 | 14 | | Bradford, Pritchard of Pawlet, Tagliavia of Corinth, and Toof of 9 |
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| 15 | 15 | | St. Albans Town 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; deduction; home study programs 13 |
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| 19 | 19 | | Statement of purpose of bill as introduced: This bill proposes to create an 14 |
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| 20 | 20 | | income tax deduction for Vermont home study program expenses that a 15 |
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| 21 | 21 | | taxpayer incurs for the taxpayer's dependent. 16 |
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| 22 | 22 | | An act relating to an income tax deduction for home study programs 17 |
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| 23 | 23 | | It is hereby enacted by the General Assembly of the State of Vermont: 18 |
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| 24 | 24 | | Sec. 1. 32 V.S.A. § 5811 is amended to read: 19 |
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| 25 | 25 | | § 5811. DEFINITIONS 20 BILL AS INTRODUCED H.249 |
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| 26 | 26 | | 2025 Page 2 of 3 |
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| 28 | 28 | | |
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| 29 | 29 | | VT LEG #379045 v.1 |
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| 30 | 30 | | As used in this chapter unless the context requires otherwise: 1 |
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| 31 | 31 | | * * * 2 |
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| 32 | 32 | | (21) “Taxable income” means, in the case of an individual, federal 3 |
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| 33 | 33 | | adjusted gross income determined without regard to 26 U.S.C. § 168(k) and: 4 |
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| 34 | 34 | | * * * 5 |
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| 35 | 35 | | (B) decreased by the following items of income (to the extent such 6 |
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| 36 | 36 | | income is included in federal adjusted gross income): 7 |
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| 37 | 37 | | * * * 8 |
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| 38 | 38 | | (v) the amount of any federal deduction or credit that the taxpayer 9 |
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| 39 | 39 | | would have been allowed for the cultivation, testing, processing, or sale of 10 |
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| 40 | 40 | | cannabis or cannabis products as authorized under 7 V.S.A. chapter 33 or 37, 11 |
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| 41 | 41 | | but for 26 U.S.C. § 280E; and 12 |
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| 42 | 42 | | (vi) the amount of interest paid by a qualified resident taxpayer 13 |
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| 43 | 43 | | during the taxable year on a qualified education loan for the costs of attendance 14 |
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| 44 | 44 | | at an eligible educational institution; and 15 |
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| 45 | 45 | | (vii) $1,000.00 of qualified expenses for enrollment of a student in 16 |
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| 46 | 46 | | a home study program, provided the student is a dependent of the taxpayer as 17 |
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| 47 | 47 | | defined under 26 U.S.C. § 152 and is not a dependent of another taxpayer; and 18 |
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| 48 | 48 | | * * * 19 |
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| 49 | 49 | | (30) As used in subdivision (21)(B)(vii) of this section, “qualified 20 |
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| 50 | 50 | | expenses” means the cost of educational instruction, materials, equipment, 21 BILL AS INTRODUCED H.249 |
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| 51 | 51 | | 2025 Page 3 of 3 |
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| 54 | 54 | | VT LEG #379045 v.1 |
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| 55 | 55 | | software, and computer hardware required for use during the normal school 1 |
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| 56 | 56 | | day when a dependent student is attending a home study program pursuant to 2 |
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| 57 | 57 | | 16 V.S.A. § 166b, whether in person or through distance learning. 3 |
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| 58 | 58 | | Sec. 2. 32 V.S.A. § 5813 is amended to read: 4 |
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| 59 | 59 | | * * * 5 |
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| 60 | 60 | | (aa) The statutory purpose of the home study program deduction in 6 |
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| 61 | 61 | | subdivision 5811(21)(B)(vii) of this title is to provide financial assistance to 7 |
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| 62 | 62 | | Vermonters who provide home study programs to their dependents. 8 |
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| 63 | 63 | | Sec. 3. EFFECTIVE DATE 9 |
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| 64 | 64 | | Notwithstanding 1 V.S.A. § 214, this act shall take effect retroactively on 10 |
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| 65 | 65 | | January 1, 2025 and shall apply to taxable years beginning on and after 11 |
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| 66 | 66 | | January 1, 2025. 12 |
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