State program
Vermont Research and Development Tax Credit
A credit calculated as a straight percentage of the federal credit earned on Vermont research.
- Offset only
Last reviewed October 2026
Program overview
Vermont keeps its research credit intentionally simple: the state credit equals a fixed percentage of the federal research credit attributable to research conducted in Vermont. Because the computation piggybacks entirely on the federal claim, the incremental compliance burden is minimal for companies already filing a federal Form 6765. The Vermont Department of Taxes publishes an annual list of credit recipients, so claimants should expect their participation to be a matter of public record.
Eligibility
Taxpayers who claim a federal research credit for qualified research conducted within Vermont.
Benefits
Non-refundable credit against Vermont income tax.
Caps, deadlines and forms
Caps and limits
No annual cap is stated for this program.
Deadlines
Claimed on the annual return; no separate application deadline is stated.
Forms
Filing forms are listed by the revenue authority: official source (opens in a new tab).
Vermont IDR questions
What an examiner is likely to ask about this credit. S1–S7 apply to every state claim; the rest come from this program's own rules.
- S1Confirm the research was physically performed within Vermont.
- S2Provide the Vermont qualified research expense calculation and base amount.
- S3Reconcile Vermont expenses to the federal Form 6765.
- S4Show how wages and supplies were apportioned between Vermont and other locations.
- S5Provide the Vermont return and credit schedule for each year claimed.
- S6Show the carryforward schedule for unused Vermont credits.
- S7Confirm the entity claiming the credit is the entity subject to Vermont tax.
Draft questions for illustration, reviewed by a specialist before any engagement.
Common weak spots
- Expenses for research performed outside Vermont included in the Vermont claim.
- Base amount computed from incomplete historical records.
See how your claim holds up
The mock audit drafts these questions for your own claim and scores the evidence behind each answer.
Run a mock audit for VermontInformation on this page is general in nature, not tax advice. Program details change frequently; always confirm current rules with the relevant revenue authority or engage a specialist before acting. Last reviewed October 2026.
Find out what your research actually qualifies for
A scoping conversation takes thirty minutes and costs nothing. You leave with a view on eligibility, likely credit range and the documentation you would need.
Free R&D mock audit: completely free. Book a call or email hello@creditarmor.ai for a login.