32 V.S.A. § 5825a — Credit for Vermont Higher Education Investment Plan contributions

(a) A taxpayer of this State, including each spouse filing a joint return, shall be eligible
for a nonrefundable credit against the tax imposed under section 5822 of this title of 10 percent of the first $2,500.00 per beneficiary, contributed by the taxpayer
during the taxable year to a Vermont Higher Education Investment Plan account under
16 V.S.A. chapter 87, subchapter 7, provided the account is provided directly by the Vermont Student Assistance
Corporation to the participant.
(b) A taxpayer who has received a credit under subsection (a) of this section shall repay
to the Commissioner 10 percent of any distribution from a higher education investment
plan account, up to a maximum of the total credits received by the taxpayer under
subsection (a) of this section minus any amount of repayment of such credits in prior
tax years except when the distribution:
(1) is used exclusively for costs of attendance at an approved postsecondary education
institution as defined in 16 V.S.A. § 2822(6);
(2) is used for a qualifying expense associated with a registered apprenticeship program
pursuant to 26 U.S.C. § 529(c)(8);
(3) is made after the death of the beneficiary or after the beneficiary becomes disabled
pursuant to subdivisions (q)(2)(C) and (m)(7) of 26 U.S.C. § 72; or
(4) is used for qualified higher education expense loan repayment pursuant to 26 U.S.C. § 529(c)(9), provided the loan being repaid was used exclusively for costs of attendance at an
approved postsecondary education institution as defined in 16 V.S.A. § 2822(6).
(c) Repayments under subsection (b) of this section shall be subject to assessment, notice,
penalty and interest, collection, and other administration in the same manner as an
income tax under this chapter. (