Onto last week’s quick update: We have several more weeks to go this session, but already, the House and Senate conference committees on some of the year’s “must pass” bills – the budget, the transportation bill and the capital bill – have signed off on their final negotiations. It’s notable for AGC-members, in particular, that the final $125 million (including cash and bonds) capital bill allocates approximately $32 million to the Department of Buildings and General Services for Fiscal Years 2026 and 2027 for major statewide construction projects and maintenance around the state. There’s more important work funded throughout the bill, like $3 million to the University of Vermont and $8 million to Vermont State Colleges for major maintenance and construction, millions for various water infrastructure projects, and more. Here’s a helpful spreadsheet for tracking the projects funded. The right-most columns highlighted in blue are the most up-to-date numbers.

 

Noticeably not yet complete are this year’s bill reimagining education, or either the House or Senate’s versions of the housing bill. This week, the House Ways & Means (or taxing) Committee heard hours of testimony on S.127’s project-based TIF proposal, called CHIP. The committee has made drastic edits to the latest draft of the plan – which was already heavily reworked in the House Commerce Committee – adding in new parameters around affordability and location requirements, plus rules governing how CHIP could be applied to projects in different Act 250 tiers. This bill still has a ways to go, assuming it’s voted out of Ways & Means, then approved on the House floor. At that point, it will head into a conference committee with the Senate. So we’re likely to see more edits in the weeks to come.

 

Also not yet addressed this year is Vermont’s next steps regarding electric cars and trucks mandates passed in 2022, and set to begin kicking in next year. The goal is for all new cars and trucks sold in the state to be electric vehicles by 2035 – a lofty but exceedingly unlikely goal, if current markets and Vermont’s current EV infrastructure are any indication. The Legislature has the power to pass legislation delaying enforcement of these rules in order to stave off some of the unintended consequences of the mandate – such as reduced car and truck availability in the state, and therefore higher prices – but so far, they haven’t opted to this session. Matt Cota from Meadow Hill has produced an enormous body of work on this issue that I encourage you all to read and watch for more information. You might consider reaching out to your local legislator or the administration about this issue if it would impact your business. If you need help figuring out how to contact your local leaders, I'm always happy to help.

 

Lastly, the House last week passed S.51, a bill which exempts military pensions and survivor’s benefits from Vermont state income taxes for Vermonters with adjusted gross income under $125,000, and a partial exemption for those making less than $175,000. This bill has been years in the making, and is great news for our many members who are veterans!

 

Have a great week and please keep in touch,