VT S0308

Removes income-based eligibility requirements for excluding U.S. military retirement income and military survivor benefit income from Vermont state income taxation

Eliminates the current phaseout structure that provided full exclusion only for taxpayers with federal adjusted gross income at or below $125,000, partial exclusion between $125,000 and $175,000, and no exclusion above $175,000

Allows all Vermont taxpayers receiving military retirement or survivor benefits to exclude this income from state taxes regardless of their total income level

Takes effect retroactively on January 1, 2026, applying to taxable years beginning on and after that date