Vermont Employment Growth Incentive (VEGI)

Our Programs Vermont APEX Accelerator Vermont Economic Progress Council (VEPC) Community and Housing Infrastructure Program (CHIP) Tax Increment Financing (TIF) Vermont Employment Growth Incentive (VEGI) VEPC Annual Reports VEPC Meeting Agendas and Minutes VEPC Members Working Groups Housing Community Development Historic Preservation Tourism and Marketing About the Agency Vermont Employment Growth Incentive (VEGI) The VEGI program provides performance-based cash incentives to businesses that are expanding in, or relocating to, Vermont. Businesses can earn incentives for creating new qualifying jobs, increasing payroll, and making capital investments that go beyond typical growth. There are no restrictions on business minimum number of jobs. To qualify, a business must: Show that the project would not happen, or would happen in a significantly less desirable way, without the incentive. Demonstrate that new activity will generate more tax revenue than it costs the state. Be welcomed by the community and follow local/regional plans. Comply with all Vermont laws and regulations. Avoid unfair competition in local markets. The application process begins with an online Pre-Application to estimate potential incentives. Businesses can then seek Initial and Final Approval from the Vermont Economic Progress Council (VEPC). Initial Approval can be granted early, even before final project details are available. Final Approval must occur in the same calendar year the project begins, and it sets your annual performance targets. To receive incentive payments, companies must meet job and payroll performance requirements each year. Incentives are paid in five annual installments once those benchmarks are achieved and maintained. VEGI Overview: Master Document Annual Report 2024 Highlight: VEGI Helps NuHarbor Security Become Cybersecurity Powerhouse 2023 Highlight: Gordini Uses VEGI to Grow Application Timeline Step 1: Submit Pre-Application Before applying, contact VEPC to create a user account on the VEGI online application system. File a Pre-Application online to get an incentive estimate. Step 2: Receive A Pre-Application Estimate VEPC will send you an estimate within a week of filing your Pre-Application. Based on the estimate, decide whether to move forward with an application. Proceed with either an Initial Application (Step 3) or skip to Final Application (Step 5). Step 3: Submit Initial Application File an Initial Application in the online system by the first Friday of the month in which you want VEPC to review it. VEPC reviews Initial Applications on the last Thursday of each month. Step 4: After Initial Approval Conduct due diligence and finalize your project plans. Officially begin the project! Step 5: Submit Final Application File the Final Application through the online system by the first Friday of the month in which you want VEPC to review it and no later than the final VEPC deadline for the calendar year in which your project begins (typically November). Data from the Initial Application carries over and can be updated. This application sets your annual performance targets. Frequently Asked Questions Q. Does my business have to have a Vermont income tax liability to receive an incentive payment under the VEGI program? A. No. The incentive consists of cash payments and does not offset a state tax liability. The incentive is not a tax credit. Q. Can my business seek approval for VEGI incentives if my business is in arrears with any State of Vermont taxes? A. No. An applicant must certify that the business is “in good standing” with the Vermont Department of Taxes. Q. Can my business get an estimate of VEGI incentives for a project we are considering?