Child Tax Credit Update: Vermont Becomes 10th State to Create Its Own Tax Cut Package

Kid playing with mother in public park.
eclipse_images / Getty Images

Governor Phil Scott of Vermont has signed a new tax cut package that includes a state-wide child tax credit (CTC) for children 5 and under in households earning $125,000 or less, reported.

Cash App Borrow: How To Borrow Money on Cash App
More: 15 Worst States To Live on Just a Social Security Check

The tax credit will phase out at a rate of $20 per every $1,000 earned over that threshold, according to a summary of the act published at The credit is fully refundable.

Act 138 (Bill H.510) also allows for a fully refundable child and dependent care credit of 72% of the federal child and dependent care credit allowed to the taxpayer and increases the earned income tax credit to 38% of the amount granted by the federal government. It also includes tax relief for student loan borrowers, retirees, and veterans.

Make Your Money Work

The final version of the $40 million bill allocates $32 million to pay for the new state-wide CTC, which legislators estimate will help more than 30,000 Vermont children.

See: POLL: Do You Think the Baby Formula Shortage Will End Soon?
Find: Tax Alert: IRS Updates Guidance on 2021 Earned Income Tax Credit

In a June 3 statement Scott called the bill “a step in the right direction,” noting that previous proposals, including a package worth nearly $50 million, “would have helped a broader cross-section of taxpayers.”

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

Best Bank Accounts of June 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.