Winterset, Inc. v. Commissioner of Taxes

The claims of taxpayers Winterset, Inc., and Kenclif Construction, Inc., were consolidated for purposes of appeal and are before this Court pursuant to V.R.A.P. 5(a). The question presented is as follows:

Whether the Vermont net income of a corporate taxpayer under 32 V.S.A. § 5811(18) includes the amount of the addback mandated by I.R.C. § 280C of wage and salary expenses which qualify for the federal New Jobs Credit (I.R.C. § 48).

We agree with the taxpayers that this question should be answered in the negative.

Under the Tax Reduction and Simplification Act of 1977, Pub. L. No. 95-30, § 202,…