VEPC urges making Vermont employment incentive permanent, cites jobs and investment

Jessica Hartleben, executive director of the Vermont Economic Progress Council (VEPC), told the Senate committee that the Vermont Employment Growth Incentive (VEGI) is a performance‑based tax incentive that ties any credit to multi‑year payroll and capital‑investment benchmarks and is verified by the Vermont Department of Taxes before payments are made.

VEPC staff described the mechanics of VEGI: an applicant proposes job creation and capital investment targets; VEPC and the state's economist analyze net fiscal impacts and determine eligibility; approved applicants earn incentives only after meeting verified annual performance benchmarks. Hartleben said payment is structured in five annual installments tied to maintained performance and that Department of Taxes verification is required to receive payments.

VEPC provided program totals and examples to illustrate its claim that incentives have supported investment. The testimony cited an academic and internal analysis that, across program history, roughly $2 million in incentives are paid per year on average and that the program has supported projects the council estimates generated roughly $1.2 billion in new capital investment and about 10,000 jobs over its life. Hartleben highlighted a St. Johnsbury project (Weidman Electrical Technology) as a case the council says was influenced by VEGI.

Committee members pressed staff about timing and partial payments after applications meet some but not all targets. Ellie Beckett, VEPC program manager, explained that the charts shown to the committee capture only applicants who have fully met all targets and remain active; applicants who met some but not all annual targets and moved to a reduced status are not included in that graphic.

Hartleben told members VEPC supports S.225 (the bill described at the hearing) to repeal the program sunset, saying removal of the expiration would provide predictability for employers and the state while retaining statutory safeguards and regular legislative reporting. VEPC offered to supply additional materials and the council's annual report so the committee could review the program's verification procedures and longitudinal outcomes in more detail.

The committee did not take a vote on S.225 during the hearing. VEPC staff said they will provide written follow‑up materials and that senators may invite the council back for a fuller briefing.