Manufacturing Leaders Testify on State of the Industry

Manufacturing Leaders Testify on State of the Industry

Several business leaders from across Vermont convened for an afternoon of testimony before the House Commerce and Economic Development Committee. The hearing underscored the critical role of manufacturing businesses in the Vermont economy, while also highlighting the opportunities and challenges unique to manufacturing in Vermont. The committee’s Chair recognized Chris Carrigan, Vice President of Business Development, for his 16 years of service to the industry.  

In his opening testimony, Chris Carrigan elevated the Vermont Chamber’s work on supportive tax policies and transforming the state into a supply chain hub by bringing buyers, suppliers, and partners together. “We are committed to strengthening our cross-border commercial ties with Québec and Canada and supporting workforce development initiatives to bridge the skills gap and help address the labor shortage,” stated Carrigan. “Supportive tax policy and economic development are vital to Vermont’s manufacturing industry.” 

Alberto Aguilar of Carris Reels (Rutland), Jay Bellows of KORE Power (Waterbury), Janette Bombardier of Chroma Technology (Bellows Falls), Julia Birnn Fields of Birnn Chocolates of Vermont (South Burlington), Rich Hornby of Mack Molding (Cavendish), and Julie Laforce of Built By Newport (Newport) each spoke to the unique products they manufacture, the value of their workforce, and the challenges and opportunities within the Vermont manufacturing community. 

Labor shortage concerns, rising supply chain costs, and disruptions, as well as a lack of workforce housing, were sentiments shared by each of the manufacturers. They also expressed appreciation for the work of legislators in recent years to make Vermont a state where manufacturing can continue to grow, including the expansion of the manufacturing tax exemption, forgivable student loans for workforce retention, the partial military retiree pension tax exemption, and more.  

“The importance of the tax exemption expansion has been crucial in our strategic planning,” stated Julia Birnn Fields. “We are currently reinvesting in our company and buying new, bigger machinery along with increasing our warehouse and manufacturing space. Continuing to expand upon these manufacturing tax exemptions and credits help keep our growth here in Vermont.”

Jay Bellows stated, “Today, we are doing what many thought was impossible. We have brought manufacturing back to Vermont, and manufacturing jobs here are increasing. The once shuttered facility is now being transformed into a hub of clean tech innovation and manufacturing. Our Vermont workers – some of whom hold GEDs, some advanced engineering degrees, many are graduates of our state colleges– are building battery energy storage systems that are among the safest and most efficient in the world. And they are doing it at a time when the demand for domestically built storage systems is at all-time high.” 

Recovery & Resiliency Remains Top of Mind for Businesses

Recovery & Resiliency Remains Top of Mind for Businesses

Looking ahead, it’s not a matter of if, but when, Vermont will face another catastrophic weather event. Resilience must be central to rebuilding and future planning. A bill currently in the Senate Government Operations Committee proposes several steps to address this. The Vermont Chamber is advocating for the bill to include measures such as the inclusion of mitigation efforts, codification of grant program best practices, and the implementation of communication initiatives to keep residents, business owners, and visitors well-informed before, during, and after disasters. Following testimony, the committee has requested that the Vermont Chamber provide language to the committee, hoping to incorporate these suggestions before the bill crosses over to the House where work on the bill is expected to continue.

The Vermont Chamber will continue to work with the committee to elevate the following recovery and resiliency priorities for businesses.

  • Including Business Organizations in Local and State Disaster Recovery Planning: Ensure that municipalities, regions, and the state include businesses in the planning and response to natural disasters by including regional development corporations and other local and regional business organizations in both the local and state-level process.
  • Communication Strategies: Create efficient strategies for communication and marketing during and after disasters.
  • Tourism Impact Mitigation: Following a disaster, and when appropriate, promote areas that remain open for business to help maintain economic stability.
  • Emergency Alert System Engagement: Collaborate with entities to encourage business enrollment in the Emergency Alert System to enhance the reach and effectiveness of emergency communication.
  • Fund Disaster Mitigation Initiatives: Proactively plan and implement mitigation strategies to reduce the downtime of operations and revenue loss following future disasters.
  • Rapid Program Implementation Strategies: Elevate attention to businesses in impacted areas that are also focusing on individuals.

Major, Innovative, Solutions Required to Address Ongoing Tax Concerns

Major, Innovative, Solutions Required to Address Ongoing Tax Concerns

In the wake of recent turmoil sparked by the anticipated 20% rise in property taxes, the urgent need for innovative cost-containment measures has become increasingly important. The Senate expedited the passage of a bill that allows school boards to delay budget votes and replace the 5% property tax increase cap with a discount system. However, top lawmakers have acknowledged that these measures are only temporary fixes and a broader solution is needed to address the issue comprehensively this session.

Despite statewide affordability concerns, discussions in the tax committees have continued on other potential tax increases including:

  • A tax on the personal income of a tax filer (single or filing jointly) earning over $500,000
  • A tax on unrealized personal gains
  • A tax on the gross sales of streaming services
  • A tax increase on the USF fees in telecommunication bills

Disaster Response Bill Under Consideration

Disaster Response Bill Under Consideration

Looking ahead, it’s not a matter of if, but when, a catastrophic weather event will hit Vermont again. Resiliency must be central to rebuilding and future planning, and a bill in the Senate Government Operations Committee would take several steps to address this. The bill, entitled “An act relating to natural disaster government response, recovery, and resiliency,” encompasses several key provisions but does not include a plan to respond to impacted businesses or communications with the traveling public. The Vermont Chamber will work with the committee on how to consider and codify best practices in state government that have been developed over the last decade to support the business community, as well as the traveling public, which is a priority that the Vermont Chamber laid out coming into the legislative session.  

As currently drafted, the bill would establish the Community Resilience and Disaster Mitigation Fund, allocating an initial $15 million for municipal disaster mitigation projects. It also outlines best management practices for rebuilding after emergencies and creates the position of Chief Climate Resilience Officer in the Department of Public Safety. The legislation also addresses the development of a policy using E-911 for more effective VT-Alerts in emergencies, the modification of stormwater utility districts, and the creation of the Urban Search and Rescue Team.  

Opportunity for Short-Term Rental and Lodging Consistency in the BE Home Bill

Opportunity for Short-Term Rental and Lodging Consistency in the BE Home Bill

S.311, known as the Be Home bill, continued to be debated and refined in the Senate Economic Development, Housing, and General Affairs Committee. Included in the newest version of the Senate’s major housing bill is language that would shift short-term rentals to operate under the same Department of Health statutes that govern the rulemaking for food and lodging establishments. The provision is an opportunity to create alignment and consistency in regulations governing short-term rentals and licensed lodging establishments.  

The Vermont Chamber testified this week on the importance of health, safety, and transparency to ensure the well-being of the traveling public in support of Vermont’s visitor economy. The remarks before the Senate Economic Development, Housing, and General Affairs Committee, provided additional context to the Licensed Lodging Establishment Rule, emphasizing the distinct regulatory landscapes for licensed lodging properties and short-term rentals. If the language is retained in the bill, it will enhance clarity and transparency while ensuring public safety. The Vermont Chamber also endorsed the requirement for paperwork submission to a governing agency, annual reviews of forms, and the posting of short-term rental safety documents in a conspicuous location. 

[Update as of February 19: Current bill language now clarifies the definition of short-term rentals, mandates the Division of Fire Safety create guidance on the rules governing health, safety, sanitation, and fitness for habitation of STRs, and puts mechanisms in place for short-term rental health and safety disclosures.] 

Vermont Chamber Continues Advocating for Smart Growth and Resilience in Act 250 Modernization Bill

Vermont Chamber Continues Advocating for Smart Growth and Resilience in Act 250 Modernization Bill

Work on the House Energy and Environment Committee’s Act 250 modernization bill continued this week as legislators considered input on measures to encourage development in areas that will lead to better smart growth outcomes for all Vermont communities. The Vermont Chamber is committed to remaining engaged in the process to secure swift and strategic positive outcomes for the Vermont business community.  

In the new version of the bill that was introduced this week, the original sections remain largely unchanged, but the bill now includes language reflecting the outcome of the Designation 2050 report that the Vermont Chamber served as an advisor for.  A section-by-section version of the bill is available online. The Vermont Chamber remains highly engaged on this issue and will be advocating for planned growth area designation requirements that are accessible to communities across the state and are large enough to encompass the thousands of housing units Vermonters need. Additionally, we will support the creation of a professional board with a mission of creating an Act 250 process for applicants that is fair, timely, and consistent across all district commissions and leaves the legal determinations of appeals with the environmental courts. In the second tier (which will be areas outside of the downtown and village planned growth areas) we will continue to support the compromise that incentivizes dense development through the creation of a road rule and forest protections that have support for working lands and rural businesses. 

26 Vermont Chamber Businesses Named as Best Places to Work in Vermont 2024

26 Vermont Chamber Businesses Named as Best Places to Work in Vermont 2024

The Vermont Chamber of Commerce congratulates our members who have been named to the 2024 Best Places to Work in Vermont list! This recognition is a testament to the commitment of Vermont businesses to creating positive and supportive work environments for their employees. This year, a total of 65 Vermont businesses were recognized, including 26 Vermont Chamber members.

The Best Places to Work in Vermont program is a statewide initiative that recognizes companies that create positive work environments for their employees. The selection process is based on an evaluation of company policies, practices, and employee surveys.

Vermont Chamber members that were named to the 2024 list include:

Small Businesses (15-99 employees)

  • Coldwell Banker Hickok & Boardman
  • Concepts NREC
  • Co-operative Insurance Companies
  • Encore Renewable Energy
  • Gallagher, Flynn & Company, LLP
  • Green Mountain Surgery Center
  • Heritage Aviation
  • Junapr Communications
  • Liquid Measurement Systems, Inc.
  • NDI
  • Open Approach
  • Pomerleau Properties Inc
  • ReArch Company
  • Redstone
  • Saba Marine
  • Union Mutual
  • VHFA

Medium Businesses (100-249 employees)

  • Chroma Technology Corp.
  • DEW Construction
  • NorthCountry Federal Credit Union
  • OnLogic
  • The Richards Group

Large Businesses (250+ employees)

  • Mascoma Bank
  • NBT Bank
  • Teknor Apex
  • Vermont Mutual Insurance Group

These businesses are setting the standard for workplace excellence in Vermont. They are committed to creating cultures that are not only productive, but also enjoyable and rewarding for employees. The final rankings will be announced at the awards presentation on March 26.

Congratulations again to our members who were named to the 2024 Best Places to Work in Vermont list!

Immediate Action Taken to Address Property Tax Increase, But New Tax Options Remain a Concern

Immediate Action Taken to Address Property Tax Increase, But New Tax Options Remain a Concern

There was movement this week on how to rapidly address the looming 20% property tax increases expected this year. A House Ways and Means Committee bill includes a repeal of the 5% cap set on tax rate increases, a measure that the Vermont Chamber and other business organizations asked legislators to take action on. This will take the burden off of non-residential taxpayers like renters and businesses to make up the difference between the 5% cap and full increase in spending. While short-term solutions to soften the projected $250 million statewide school spending hikes are the present focus of the taxing committees, the even greater concern is how they will address the long-term implications of an education fund that does not meet the needs of a school system with dwindling enrollment. Specifically, the next step outlined by legislators is considering new revenue sources for the education fund.

Taxes that have been discussed this session that may be on the table for this discussion include a “cloud tax” on software as a service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). Whether as a response the the unsustainable increase in school spending or as a more general proposal, it is one possibility that is likely to gain traction in the House again this session. Nearly all Vermont businesses that use cloud-based services would see considerable cost increases. The Vermont Chamber will be working to minimize the impact, specifically on business-to-business transactions.

The following tax increases have also been under discussion this session:

  • A high-income earner surcharge of 3% aimed at tax filers, filing single or jointly, earning an annual income over $500,000
  • A new personal income tax on unrealized capital gains
  • Moving to a worldwide combined reporting corporate tax
  • Excise tax on sugary beverages
  • Increased taxation on candy (including maple)
  • Broadening Vermont’s sales tax.

 

While legislative proposals for increasing the burden on Vermonters are discussed, the Vermont Chamber is working to ensure cost containment measures, like finding efficiencies in the education system, are also considered.

Building Tomorrow: The Evolving Housing Legislation Landscape

Building Tomorrow: The Evolving Housing Legislation Landscape

Legislative leadership has made a cross-chamber commitment that there will be an Act 250 package this session that modernizes the land-use and development law to meet the needs of Vermonters by enabling the creation of new housing. Work continued this week on the Be Home bill, H.687, and S.308. Each of these bills contains initial committee perspective that will play a role in reaching a final compromise.

Work on the Be HOME bill continued in the Senate Economic Development, Housing, and General Affairs Committee where members worked to hammer out interim Act 250 relief for housing development while a larger Act 250 statewide mapping project would happen over the next several years. Due to procedural requirements, that bill was voted out of committee today but will be recommitted back to the same committee next week to receive further drafting. In addition to land use, the BE Home bill includes housing programming, local zoning changes, and taxation changes.

The House Energy and Environment Committee is shifting from taking lengthy testimony on H.687 which covers Act 250 and the summer land use studies, to implementing feedback and stakeholder considerations. With six weeks until the crossover deadlines for bills to move from one chamber to another, the committee will have significant time to refine the bill. The Vermont Chamber will continue to advocate for proposals that are more closely in line with the compromise made in the Necessary Updates to Act250 report.

The Senate Natural Resources Committee is also working on a bill concerning Act 250 and weaving together the three land use reports that were done before the session. It is unclear how the two Senate Act 250 bills will come together. There was also a joint hearing between the House General and Housing Committee and the House Human Services Committee this week on affordable housing initiatives.

On March 14, the Vermont Department of Housing & Community Development and statewide partners will hold a summit on the Homes for All Toolkit that will address community housing and affordability concerns. The toolkit includes a Missing Middle Homes Design Guide, a series of five Vermont Neighborhood Infill Design Case Studies, and a Builders’ Workbook.

Data Privacy Legislation Prioritized by House Commerce Committee

Data Privacy Legislation Prioritized by House Commerce Committee

The legislature has introduced a new version of a data privacy bill that was discussed last year, pulling from laws in Connecticut and Oregon. The bill contains a small business exemption that will support Vermont’s smallest businesses from undue burden, but it also contains a private right of action that could lead to costly lawsuits. In the absence of comprehensive federal data privacy law, state legislatures have been passing a patchwork of different, and sometimes conflicting, laws.

These laws regulate how companies control and process personal data in an economy that is relying on it more and more. They can be important consumer protection tools but also have the potential to create confusion and challenging burdens in the marketplace. Nationally, the Information Technology and Innovation Foundation has estimated that state privacy laws could impose costs of $98 billion and $112 billion annually. Over 10 years, these costs would exceed $1 trillion. The burden on small businesses would be substantial, with U.S. small businesses bearing $20–23 billion annually.