§ 5825a - Credit for Vermont higher education investment plan contributions - Vermont Statutes

§ 5825a. Credit for Vermont higher education investment plan contributions

(a) A taxpayer of this state, including each spouse filing a joint return, shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of 10 percent of the first $2,500.00 per beneficiary, contributed by the taxpayer during the taxable year to a Vermont higher education investment plan account under subchapter 7 of chapter 87 of Title 16.

(b) A taxpayer who has received a credit under subsection (a) of this section shall repay to the commissioner 10 percent of any distribution from a higher education investment plan account, which distribution is not excluded from gross income in the taxable year under Section 529 of the Internal Revenue Code, as amended, up to a maximum of the total credits received by the taxpayer under subsection (a) of this section minus any amount of repayment of such credits in prior tax years. Repayments under this subsection shall be subject to assessment, notice, penalty and interest, collection, and other administration in the same manner as an income tax under this chapter. (Added 2003, No. 65, § 2, eff. for tax years beginning on and after Jan. 1, 2004; amended 2005, No. 207 (Adj. Sess.), § 6, eff. May 31, 2006.)