VT LEG #381763 v.2
S.122 – An act relating to economic and workforce
development
As Recommended by the Senate Committee on Appropriations
1,i
Bill Summary
his bill would make several appropriations to support existing
economic and workforce development programs aimed at
providing assistance to small businesses in Vermont. The bill would
also expand the Downtown and Village Center Tax Credit Program to
provide a higher cap in the total value of credits that can be awarded
annually.
Fiscal Impact
This bill would appropriate $3.9 million from the General Fund in fiscal
year 2026 contingent on appropriation in the budget for workforce and
economic development programs. The bill would also increase the cap on
the total value of Downtown and Village Center Tax Credit annual
awards from $3.0 million to $5.0 million annually. This will result in an
additional $2.0 million in forgone revenue in the General Fund annually.
Background and Details
The following sections have a fiscal impact.
Section 1
Section 1 would increase the total amount of credits that can be awarded annually under the Downtown and
Village Center Tax Credit Program from $3.0 million to $5.0 million annually. These credits are awarded to
developers for qualifying historic rehabilitation, façade improvement, code improvement, and flood
mitigation projects. These credits can then be claimed against the awardees’ personal or corporate income
tax liability, or, as is often done, the credits can be sold to a bank or insurance company. The bank or
insurance company can then claim the credit against their bank franchise or insurance premium tax liability.
All of the tax types that these credits can be used to offset go into the General Fund. Therefore, this change
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The Joint Fiscal Office (JFO) is a nonpartisan legislative office dedicated to producing unbiased fiscal analysis – this fiscal note is
meant to provide information for legislative consideration, not to provide policy recommendations.
T
March 25, 2025 Patrick Titterton, Senior Fiscal Analyst
This bill expands
the Downtown
and Village
Center Tax Credit
Program and
appropriates
funds to support
existing
economic and
workforce
development
programs. S.122 - An act relating to economic and workforce development 2
VT LEG #381763 v.2
would result in an additional $2.0 million in forgone revenue to the General Fund annually.
Section 2
Section 2 would make the following appropriations from the General Fund in fiscal year 2026 contingent
on appropriation in the budget:
$300,000 to the Department of Economic Development (DEC) to support the Vermont Law and Graduate
School’s public education offerings and free legal support to small businesses through its Vermont Small
Business Law Center.
$350,000 from the General Fund to DEC to continue the support of the Vermont Professionals of Color
Network. The Network provides workforce and business development services to Black, Indigenous, and
People of Color (BIPOC) business communities.
$688,889 to the Vermont Small Business Development Center to continue its work helping Vermonters
start, acquire, and grow businesses. The funds will be used to increase business advising and educational
workshops.
$100,000 to the Vermont Sustainable Jobs Fund Program to create a business resource guided directed
towards small businesses. The resource guide will be a magazine-style annual guide featuring profiles of
Vermont business service organizations, an interactive website to be a digital home for the guide’s content,
and an artificial intelligence platform to compliment the website.
$581,000 to the Office of Economic Opportunity to support the Vermont Community Action Partnership’s
microbusiness development program.
$120,000 to the Vermont Small Business Development Center to provide executive business skills training
and coaching support to owners of small businesses with 20 or fewer employees. The Center will contract
with the Vermont Sustainable Jobs Fund and the Vermont Manufacturing Extension Center to provide skills
training and coaching services.
Section 3
Section 3 would appropriate $1,071,800 from the General Fund to the Vermont Arts Council in fiscal year
2026 to match the estimated federal contribution contingent on appropriation in the budget. This
appropriation would represent a $68,737 increase over what was included in the Governor’s recommended
fiscal year 2026 budget.
This section would also appropriate $120,000 from the General Fund to the Vermont Arts Council to
support the Vermont film and creative industry initiative contingent on appropriation in the budget, which
will build the basic industry structure to grow Vermont’s film and creative media sector. The funds will be
used to build and maintain an online database of film and creative media assets and opportunities and to
support a part-time staff position within the Vermont Arts Council to manage the database.
Section 4
Section 4 would appropriate $250,000 from the General Fund to the Department of Forests, Parks and
Recreation in fiscal year 2026 contingent on appropriation in the budget to support the Vermont Outdoor
Business Alliance’s Climate and Circularity Outdoor Business Program. This program provides sustainability
and innovation technical assistance to Vermont’s outdoor sector for business planning and adaptations. The
funds will be used to provide technical assistance to outdoor businesses, manage small group workshops and
consultation, and to coordinate industry events.
S.122 - An act relating to economic and workforce development 3
VT LEG #381763 v.2
Section 5
Section 5 would appropriate $350,000 from the General Fund to DEC in fiscal year 2026 contingent on
appropriation in the budget to support the International Trade Division’s initiatives. These include hiring
international recruitment consultants, developing advanced site selection data and mapping tools, expanding
Vermont’s presence at trade shows, and sponsoring events that align with the State’s economic development
goals.
Section 6
Section 6 would establish the Vermont-Ireland Trade Commission within the State Treasurer’s Office to
advance bilateral trade and investment between Vermont and Ireland. The Commission will be comprised of
10 members including three appointed by the Governor, three appointed by the Speaker of the House, three
appointed by the Senate Committee on Committees, and the State Treasurer or designee. Each member,
aside from the Treasurer or designee, will serve four-year terms.
The Commission is authorized to raise funds through direct solicitation or other fundraising, accept
donations, grants, and bequests to defray administrative expenses and to carry out its purpose.
Section 10
Section 10 would create the Convention Center and Performance Venue Task Force to explore the
feasibility of building a of a convention center or performance venue in Vermont. The Task Force would be
comprised of one member of the House, one member of the Senate, the Secretary of Commerce and
Community Development or designee, the President of the Vermont Chamber of Commerce or designee,
the Chief Executive Officer of the Lake Champlain Chamber of Commerce or designee, and the President
of the Regional Development Corporations or designee.
S.122 - An act relating to economic and workforce development 4
VT LEG #381763 v.2
Appendix: Summary of Contingent
Appropriations
Section Agency Program
Bill
Appropriation
Source
2a
Department of Economic
Development
Vermont Law and Graduate
School
$300,000 General Fund
2b
Department of Economic
Development
Vermont Professionals of
Color Network
$350,000 General Fund
2c
Vermont Small Business
Development Center
Assistance starting, acquiring,
and growing businesses
$688,889 General Fund
2d
Vermont Sustainable Jobs
Fund
Business resource guide for
small businesses
$100,000 General Fund
2e
Office of Economic
Opportunity
Microbusiness support $581,000 General Fund
2f
Vermont Small Business
Development Center
Coaching services $120,000 General Fund
3a Vermont Arts Council Federal matching $1,071,800 General Fund
3b Vermont Arts Council
Film and creative industry
initiative
$120,000 General Fund
4
Department of Forest, Parks
and Recreation
Vermont Outdoor Business
Alliance Climate and
Circularity Outdoor Business
Program
$250,000 General Fund
5
Department of Economic
Development
International Trade Division $350,000 General Fund
Total $3,931,689
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The full fiscal note history is available on the fiscal tab of the bill page on the General Assembly website and can be pulled up
through a bill number search on the JFO page.