VT H0420

Municipalities in counties with FEMA major disaster declarations from 2023 or 2024 may establish project-based tax increment financing (TIF) districts to fund flood remediation, infrastructure, brownfield cleanup, and other improvements

Up to 70% of education property tax increment and at least 85% of municipal property tax increment can be retained for project financing, with retention periods up to 20 years as determined by the Vermont Economic Progress Council

Municipalities must develop project plans demonstrating the project would not proceed without TIF revenues, hold public hearings, and obtain voter approval before incurring debt against the project zone

Eligible improvements include utilities, transportation, public facilities, land acquisition, demolition, brownfield remediation, site preparation, and flood mitigation infrastructure

The Vermont Economic Progress Council reviews and approves applications, with annual reporting requirements to the legislature on project outcomes, incremental revenues, and performance measures; effective July 1, 2025