SPOTLIGHT PROGRAMS

Vermont Employment Growth Incentive (VEGI): This discretionary program provides a performance-based cash grant to businesses that create net new full-time jobs and make capital investments.  To qualify, businesses must create new jobs with wages at or above 140% or 160% of the Vermont Minimum Wage.  The actual wage threshold (140% or 160% of the minimum wage) is based on the Labor Market Area (LMA) where the project is to be located. The incentive award is disbursed in 5 equal installments once project milestones have been met.

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TAX CREDITS

Research and Development Tax Credit:  Businesses that incur qualified R&D expenses made in Vermont. Qualified expenses can be claimed equal to 27% of the federal tax credit.  The credit is non-refundable but can be carried forward for up to 10 years.

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‍Investment Tax Credit: This tax credit is designed to encourage investment in rehabilitation, energy, qualifying advanced coal projects, qualifying gasification projects, and qualifying advanced energy projects. Qualifying businesses that are eligible for the federal tax credit may also be qualified to receive the Vermont tax credit. The credit amount is equal to 24% of investment tax credit attributable to the Vermont-property portion of the investment.

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DIRECT FINANCIAL ASSISTANCE

Direct Loan Program - Provide the lesser of $1.5 million or 40% of a project for construction or renovation of real estate, and the purchase of machinery, furniture, fixtures, and equipment. Qualifying businesses include manufacturing, processing, warehousing, research and development, travel and tourism, information technology, and certain energy-related projects.‍

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Small Business Loan Program- Loans are provided for small businesses for a maximum $500,000. The loan can be used for fixed assets up to 40% of the project or 50% of working capital. Eligible businesses include manufacturing, processing, warehousing, research and development, travel and tourism, information technology, certain energy generation or efficiency projects, and retail and service businesses.

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JOB TRAINING

The Vermont Training Program (VTP): Businesses seeking to train newly hired workers and/or upgrade the skills of existing employees may be eligible for a discretionary training grant. The VTP provides reimbursable grants of up to 50% of training costs. To qualify, businesses must offer wages to trained employees that meet or exceed the state’s livable wage. Training may be conducted on-site or through a training provider/vendor.

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Last Updated: May 2023