Tax Relief

Vt. Adopted the Fed. COVID-19 tax relief for unemployment, loans

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“href =” https://www.law360.com/tax-authority/articles/1376561/# “> Abraham Gross · April 19, 2021 at 1:05 p.m. EDT

Vermont will exempt unemployment insurance income and federal loan issuance from state income taxes in 2020.

HB 315, which went into effect Friday without the signature of Republican Governor Phil Scott, passes portions of federal tax law and grants Vermonters a tax exclusion for the first $ 10,200 in unemployment benefits and an exclusion from granting loans under the federal law on the protection of Paychecks.

The bill provides for unemployment exclusion for individuals with adjusted gross income of up to $ 150,000 to apply for 2020 and apply retrospectively to tax years beginning on and after January 1, 2020. The exclusion from lending will apply from January 1, 2021.

The Unemployment Benefit Tax Exemption was waived for federal income tax purposes under the American Rescue Plan Act , while the exclusion from PPP lending has been implemented by the Coronavirus Aid, Relief and Economic Security Act .

HB 315 also makes changes to government finances, including governance of economic aid and grants, funding of health and housing services, and other spending initiatives.

The measure was introduced on February 23 by Rep. Matthew Birong, D-Vergennes.

– Arrangement by Vincent Sherry.

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