July 19, 2023 Vermont continues to accept relocation grant applications for employees moving to the state Employees who have recently moved, or plan to move to Vermont, may still be eligible for a relocation expense reimbursement grant of up to $7,500 through the state's "ThinkVermont" Worker Relocation Incentive program. The program was funded by a one-time allocation of $3.09 million from the state's legislature and is available to two types of workers — new relocating workers and new remote workers. The Vermont Agency of Commerce and Community Development (Agency), which administers the program, announced that while it has received applications for more funding than is currently available, the program will remain open and continue to accept applications, although funding is not guaranteed. As part of the grant application approval process, employers are required confirm the applicant's eligibility. Eligibility requirements Eligibility for the relocation grant differs for new relocating workers and new remote workers.
Ernst & Young LLP insights Vermont is not the only jurisdiction using incentives to attract remote workers, and in some cases those incentives also apply to employers. Louisiana. SB 157, enacted in 2021, provides a Louisiana income tax exemption of 50% of gross wages up to $150,000 to qualifying remote workers (referred to as "digital nomads") who establish residency within the state after December 31, 2021. This exemption applies for a period of up two years from 2022 through 2025 and only to those wages earned from remote work. The provision was enacted for purposes of Louisiana economic development. (See Tax Alert 2021-1346.) West Virginia. "Ascend WestVirgina" offers an incentive of $12,000 and one year of free outdoor recreation to remote workers moving to the state. Additionally, as incentive to employers, tax reforms were made under H.B. 2026 (2021) which, effective January 1, 2022, included an exemption from nonresident income tax for employment within the state of 30 or fewer days in the year. (See Tax Alert 2021-0799.) Cities. Some cities also offer cash incentives to attract remote workers: Shoals area, Alabama; Topeka, Kansas; and Tulsa, Oklahoma. ———————————————
Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor | |||||||||