Vermont Research and Development Tax Credit

Program Overview

Vermont provides a research and development tax credit based on a fixed percentage of the federal research credit attributable to qualifying research conducted in Vermont. Taxpayers claiming the credit generally use the federal research credit as the basis for determining the applicable Vermont credit. The Vermont Department of Taxes publishes an annual list of credit recipients, subject to applicable disclosure requirements.

Eligibility

• Taxpayers that claim a federal research credit for qualifying research conducted in Vermont may qualify.
• The underlying research activities and expenses must meet applicable federal and Vermont requirements.
• Additional requirements may apply to the calculation and claiming of the Vermont credit.

Benefits

• Non-refundable credit against Vermont income tax liability.
• Credit is calculated as a percentage of the applicable federal research credit attributable to qualifying Vermont research.