The State of Vermont offers a cash incentive for new job creation through the Vermont Employment Growth Incentive (VEGI) program. Companies must apply to be authorized for the incentive through the Vermont Economic Progress Council, which determines eligibility based on three factors: Would the proposed activity occur without the incentive (But For); does the company and project meet program guidelines; and will the project generate new tax revenues for the State beyond the cost of the incentives. The incentive is calculated by determining the net fiscal impact of qualifying new jobs (full-time, permanent, non-owner, earning above the VEGI wage threshold) payroll and capital investments made by the applicant for a period of up to five years. The resulting net revenue impact is used to calculate a percentage, which is then applied against the qualifying new payroll of the net new qualifying jobs created, the product of which is the incentive amount the company can earn that year, if base payroll is maintained and targets are met. The earned incentive is paid out in five installments if the new payroll and jobs are maintained.
Applications for the VEGI incentive are authorized through the Vermont Economic Progress Council (VEPC); applications can be submitted at any time, and are reviewed on a monthly basis. GBIC works with businesses prior to and throughout the application process to ensure that criteria are understood and fully detailed.