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Member, Beacon International Group, Ltd.
MONTPELIER, Vt.Organizations that set up captives in Vermont this year and next will receive a one-time $7,500 credit to offset their premium taxes, and sponsors of smaller captives will receive a one-time exemption from the $7,500 minimum tax, under legislation that received final approval Tuesday.
The tax break will apply to captives set up after Vermont Gov. Jim Douglas, who supported the bill, signs the measure into law.
In addition, the legislation, S. 42, will increase to 11% from 10% the percentage of premium tax revenue that can be used for captive regulation and promotion.
Vermont is the largest captive domicile in the United States and the third-largest in the world. It has 555 captives.
So far in 2009, Vermont has licensed nine captives, according to Peter Raymond, director of captive insurance at the Department of Banking, Insurance, Securities & Health Care Administration's Captive Insurance Division in Montpelier, Vt.