Committee Hears Proposal to Make Manufacturer’s Unused Tax Credit Refundable

An unidentified committee member described a proposal to make a manufacturer’s unused Vermont corporate tax credit refundable on a limited schedule so the company can realize roughly $3.5 million in credits before they expire. "What I proposed here is to make that tax credit ... refundable at no more than $500,000 a year," the member said, adding an intended effective date of 2027 so current corporate income tax revenue would not be affected in the present budget year.

The witness identified the company as Wyland, a long‑standing producer of cellulose transformer-board in St. Johnsbury that undertook a major equipment and facility upgrade in 2012 and met a previously projected increase of about 75 jobs. The speaker said Wyland still holds roughly $3.5 million in unused credit that would otherwise expire in 2026; the proposal would allow yearly refunds capped at $500,000 until the credit is exhausted (the speaker referenced a possible end date in 2034).

Committee members discussed bringing the company’s CFO or Department of Economic Development staff (Tim Terry was mentioned) into a future Zoom session so members could hear directly from company representatives and from economic-development staff before taking further steps. No formal motion or vote was recorded during this meeting.