PolicyEngine · DTrim99 · Jun 25, 2026 · Jun 25, 2026
diff --git a/changelog.d/vt-act169-circuit-breaker.changed.md b/changelog.d/vt-act169-circuit-breaker.changed.md
@@ -0,0 +1 @@
+Updated the Vermont renter credit for 2026 Act 169 (H.949): the fair market rent rate rises to 12.5% and the cap to $3,250 for claim year 2027, reverting to 10% and $2,500 for claim year 2028.
diff --git a/policyengine_us/parameters/gov/states/vt/tax/income/credits/renter/fmr_rate.yaml b/policyengine_us/parameters/gov/states/vt/tax/income/credits/renter/fmr_rate.yaml
@@ -1,13 +1,21 @@
 description: Vermont provides a renter credit of this fraction of fair market rent.
+# 2026 Vt. Acts No. 169 (H.949) temporarily raises the rate to 12.5% for claim
+# year 2027 (Secs. 8-9), then reverts it to 10% for claim year 2028+ (Secs. 10-11).
 values:
   2021-01-01: 0.1
+  2027-01-01: 0.125
+  2028-01-01: 0.1
 metadata:
   unit: /1
   period: year
   label: Vermont renter credit fair market rent rate
   reference:
     - title: 32 V.S.A. §6066. Homestead Property Tax Credit and Renter Credit (b)(1)(A)
       href: https://law.justia.com/codes/vermont/2022/title-32/chapter-154/section-6066/
+    - title: 2026 Vt. Acts No. 169 (H.949), Sec. 9 (claim year 2027 renter credit expansion to 12.5%)
+      href: https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT169/ACT169%20As%20Enacted.pdf#page=10
+    - title: 2026 Vt. Acts No. 169 (H.949), Sec. 11 (claim year 2028 reversion to 10%)
+      href: https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT169/ACT169%20As%20Enacted.pdf#page=13
     - title: 2022 Vermont instruction booklet
       href: https://tax.vermont.gov/sites/tax/files/documents/Income%20Booklet-2022.pdf#page=35
     - title: 2021 Vermont instruction booklet

diff --git a/policyengine_us/parameters/gov/states/vt/tax/income/credits/renter/max_credit.yaml b/policyengine_us/parameters/gov/states/vt/tax/income/credits/renter/max_credit.yaml
@@ -0,0 +1,18 @@
+description: Vermont caps the renter credit at this amount.
+# 2026 Vt. Acts No. 169 (H.949) temporarily raises the cap to $3,250 for claim
+# year 2027 (Secs. 8-9), then reverts it to $2,500 for claim year 2028+ (Secs. 10-11).
+values:
+  2021-01-01: 2_500
+  2027-01-01: 3_250
+  2028-01-01: 2_500
+metadata:
+  unit: currency-USD
+  period: year
+  label: Vermont renter credit maximum
+  reference:
+    - title: 32 V.S.A. §6066(b)(1) (renter credit shall not exceed this amount)
+      href: https://legislature.vermont.gov/statutes/section/32/154/06066
+    - title: 2026 Vt. Acts No. 169 (H.949), Sec. 8 (claim year 2027 renter credit cap $3,250)
+      href: https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT169/ACT169%20As%20Enacted.pdf#page=9
+    - title: 2026 Vt. Acts No. 169 (H.949), Sec. 10 (claim year 2028 cap reversion to $2,500)
+      href: https://legislature.vermont.gov/Documents/2026/Docs/ACTS/ACT169/ACT169%20As%20Enacted.pdf#page=13
diff --git a/...gine_us/tests/policy/baseline/gov/states/vt/tax/income/credits/rent/vt_renter_credit.yaml b/...gine_us/tests/policy/baseline/gov/states/vt/tax/income/credits/rent/vt_renter_credit.yaml
@@ -89,3 +89,42 @@
   output:
     vt_renter_credit: 874
 
+
+- name: test 8, Act 169 - claim year 2026 baseline 10% rate (full credit)
+  period: 2026
+  input:
+    vt_renter_credit_income: 5_000
+    county: ADDISON_COUNTY_VT
+    tax_unit_size: 2
+    rent_is_shared_with_another_tax_unit: false
+    housing_assistance: 0
+    rent: 0
+    state_code: VT
+  output:
+    vt_renter_credit: 1_692
+
+- name: test 9, Act 169 - claim year 2027 expansion to 12.5% rate (full credit)
+  period: 2027
+  input:
+    vt_renter_credit_income: 5_000
+    county: ADDISON_COUNTY_VT
+    tax_unit_size: 2
+    rent_is_shared_with_another_tax_unit: false
+    housing_assistance: 0
+    rent: 0
+    state_code: VT
+  output:
+    vt_renter_credit: 2_115
+
+- name: test 10, Act 169 - claim year 2028 reverts to 10% rate (full credit)
+  period: 2028
+  input:
+    vt_renter_credit_income: 5_000
+    county: ADDISON_COUNTY_VT
+    tax_unit_size: 2
+    rent_is_shared_with_another_tax_unit: false
+    housing_assistance: 0
+    rent: 0
+    state_code: VT
+  output:
+    vt_renter_credit: 1_692
diff --git a/policyengine_us/variables/gov/states/vt/tax/income/credits/renter/vt_renter_credit.py b/policyengine_us/variables/gov/states/vt/tax/income/credits/renter/vt_renter_credit.py
@@ -67,5 +67,8 @@ def formula(tax_unit, period, parameters):
             ],
             default=0,
         )
-        unrounded = credit_value * (1 - shared_residence_reduction)
+        # The renter credit may not exceed the statutory maximum (32 V.S.A.
+        # 6066(b)(1)); 2026 Vt. Act 169 raises this for claim year 2027 only.
+        capped_credit = min_(credit_value, p.max_credit)
+        unrounded = capped_credit * (1 - shared_residence_reduction)
         return np.round(unrounded)
Original file line number	Diff line number	Diff line change
		@@ -0,0 +1 @@
		Updated the Vermont renter credit for 2026 Act 169 (H.949): the fair market rent rate rises to 12.5% and the cap to $3,250 for claim year 2027, reverting to 10% and $2,500 for claim year 2028.