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Legislature Update - Cloud Tax and Data Privacy; Networking Event
We continue to monitor the work of the Vermont Legislature. Among the issues seeing recent activity is the cloud tax and data privacy.
Education Taxes and Cloud Tax
Lawmakers are attempting to fix a problem with a school funding mechanism passed last year (Act 127) that was intended to help school districts with students with greater needs and exacerbated by changes in property values, inflation, and loss of COVID relief funding. The act included a five percent cap on property tax rates meant to provide a smoother transition for school districts affected by the funding change. Instead, the cap has led to unforeseen spending increases leading to property tax increases of up to 20 percent. In response the legislature is moving to remove the cap and introduce targeted tax discounts.
Against this backdrop, the House Ways and Means committee targeted adding the sales tax to prewritten software accessed remotely (the so-called Cloud Tax), estimated to raise $22 million from Vermont businesses and consumers. This is based on adding the 6% sales tax to Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS). The tax was pulled from a telecommunications bill and likely will be added to an education funding bill. The Committee chair conceded the cloud tax is “a drop in the ocean” of the education fund spending of more than $2 billion. However, the pressure to find any kind of relief for education taxes makes fighting the Cloud Tax more difficult this year.
Data Privacy
The House Commerce Committee has been discussing H.121, which creates data privacy legislation for Vermont.
The bill would impact businesses that control or process the personal data of 6,500 or more consumers. Among the bill’s many provisions, it will enable consumers to easily find what data is being collected about them, correct inaccuracies, request deletion of data, and opt out of data collected for targeted advertising and other purposes.
Most VTTA members are small-to-medium size businesses with Vermont owners, who support protection of Vermonters data privacy. Our main concern is with the inclusion of a private right of action in the bill.
We are concerned that allowing PRA could potentially open a Pandora’s box of “gotcha” litigation designed to achieve a settlement payment that could overwhelm small Vermont-based businesses and organizations. On the positive side, the bill does allow a 60-day cure period to provide an opportunity for Vermont businesses to address data violation claims. We let the committee know that we would prefer that any claims that are not addressed via the cure period be handled by the Attorney General’s office as the best arbiter of what is inadvertent or minor violation vs. what is serious.
Networking Event
The VTTA in partnership with Vermont Tech Meetup is hosting an informal networking get-together Feb. 22 at Queen City Brewery in Burlington. Come join us for an evening of connecting and building community with other Vermonters working in the technology ecosystem. As part of the event, we’ll be holding an “open mic” session, where attendees are invited to share their current projects, promote upcoming events, discuss their businesses, seek support, or ask for feedback from the community.
Find more here.
Jeff Couture
Executive Director
Vermont Technology Alliance
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Tech Networking Event
(February 22, 2024 – Queen City Brewery)
The Vermont Technology Alliance and Vermont Tech Meetup are partnering to present a free networking event with an Open Mic at Queen City Brewery. Come join us for an evening of connecting and building community with other Vermonters working in the technology ecosystem.
Find more here
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Peak Pitch 2024 @ Sugarbush
(March 12, 2024 – Sugarbush)
Hosted by VTTA member FreshTracks Capital, Peak Pitch Vermont, now in its 18th year, is a skiing, networking and fundraising event held at Sugarbush Mountain. Entrepreneurs are paired on a chairlift with an investor or advisor, and provided the chance to deliver their elevator pitch on the way up the mountain during a fun and active day out on the mountain.
Find more here.
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MindEdge & VTTA Professional Development Offering | |
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Computer Applications
Focusing on Microsoft Office software, these courses guide learners through the
tools needed to create products that inform and impress.
Why Computer Applications Training?
In a world where technology evolves rapidly, it’s important to stay ahead of the changes by having a strong working knowledge of the software used in the office environment each day. Take the opportunity to sharpen your skills in the Microsoft Office suite and keep up with the growing demand for computer mastery. In these courses, you can learn the tips and tricks of Microsoft Excel, how to make a visually-appealing PowerPoint presentation, and the essential skills of QuickBooks®.
See the Course List
VTTA members receive 10% off all courses
See more about VTTA & MindEdge Offerings
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GlobalFoundries Receives $1.5 Billion in CHIPS Act Funding
(February 19, 2024 – GlobalFoundries)
The U.S. Department of Commerce announced $1.5 billion in funding for GlobalFoundries as part of the U.S. CHIPS and Science Act. This investment will enable GF to expand and create new manufacturing capacity and capabilities to securely produce more essential chips for automotive, Internet of Things (IoT), aerospace, defense, and other vital markets.
Approximately $125 million of the funding will be put toward the $900 million modernization of GF’s facility in Essex Junction, Vermont. The project will upgrade existing facilities, expand capacity, and create the first U.S. facility capable of high-volume manufacturing of next-generation gallium nitride (GaN) semiconductors for use in electric vehicles, power grids, data centers, 5G and 6G smartphones and other critical technologies. Vermont has been designated as a "Tech Hub" by the Economic Development Administration for developing an ecosystem in support of GaN technology.
Read more here.
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Vermont ‘Tech Hub’ working on proposal to land $35 million in federal funding
(February 7, 2023 – Burlington Free Press)
A critical deadline is fast approaching for the University of Vermont, GlobalFoundries and the state, which last October celebrated landing designation as a Tech Hub by the U.S. Department of Commerce’s Economic Development Administration (EDA), one of just 31 in the country.
The designation − won out over nearly 400 applications − came with exactly no money. But on Feb. 29, Vermont’s tech hub, led by Doug Merrill, regional innovation officer at the University of Vermont, will submit a proposal to the EDA for a $35 million grant to get the Tech Hub up and running.
“We’re competing with 20 other Tech Hubs,” Merrill cautioned. “It’s not assured (that we’ll get the grant) but I think we have a great story and really good partners.”
Gallium nitride (GaN) was at the heart of UVM’s winning proposal. The innovative material promises better performing chips for a range of industries, from electric vehicles to medical imaging equipment and consumer electronics.
Read more here.
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Can Vermont Lawmakers Rein in Big Tech to Protect Kids?
(February 16, 2024 – Vermont Public)
An internet-safety bill that some lawmakers are characterizing as the “strongest” piece of youth mental health legislation in Montpelier this year faces an almost certain legal challenge from the big technology companies it seeks to regulate.
More than 50% of Vermont middle schoolers spend at least three hours a day on their screens, and much of that time is devoted to social media platforms like Instagram, TikTok and Snapchat.
Though the U.S. Surgeon General warned last year that those social media applications pose a “profound” risk to the mental health of children, federal lawmakers have yet to enact any substantive legislation targeted at the platforms. And some Vermont lawmakers say it’s time for the state to take matters into its own hands.
“For kids in particular, we’re trying to make sure there’s some safeguards in place,” said Bradford Rep. Monique Priestley.
Read more here.
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First Round of Venture Capital Program Investments Announced to Help Vermont Entrepreneurs and Business Startups
(February 7, 2024 – Office of Gov.Phil Scott)
Governor Phil Scott, the Department of Economic Development (DED) and the Vermont Economic Development Authority (VEDA) announced the first round of Venture Capital Program investments thanks to Vermont’s State Small Business Credit Initiative (SSBCI). The Venture Capital Program is allocating nearly $29 million to venture capital funds to help Vermont entrepreneurs and business startups.
Venture Capital Program recipients will use the SSBCI funds on seed fund investments; leveraging accelerator programs to make small investments in rural, pre-seed stage companies; and investments in high-growth, technology innovation companies in the healthcare sector.
Read more here.
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Survey: Vermonter’s Top Future Industry Investment Choices are Biotech, AI, and Renewable Energy
(February 6, 2024 – MarketBeat)
According to a survey by the stock market information news site MarketBeat, the top three industries Vermonters would invest in if they had $10,000 are:
- Biotechnology and Gene Editing
- Artificial Intelligence and Robotics
- Renewable Energy Advancements
MarketBeat ran a survey of 3,000 people to ask them a hypothetical question: If you had $10,000 to invest in one future industry, which would you choose? They then broke down the top responses by state.
The Vermont top three were also in the top 10 list for other states produced by MarketBeat:
Read more here.
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VC3 Completes Acquisition of DominionTech, Vermont-based Information Technology Service Provider
(February 6, 2024 – VC3)
VC3, a leading managed service provider serving municipalities and commercial businesses across North America, announced the acquisition of DominionTech, an IT services provider supporting Vermont and New Hampshire businesses, and a VTTA member. By acquiring this highly reputed regional company, VC3 significantly expands its presence in New England.
Read more here.
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Pioneer Power Partners with Noad Power to Launch Zero-Emission, Mobile EV Charging Platform
(January 28, 2024 – Nomad Power)
Pioneer Power Solutions, Inc. announced that it is launching its first zero-emission platforms in partnership with NOMAD Transportable Power Solutions. Pioneer’s Zero Emission e-Boost (“ZEeB”) and EXZELCR platforms set a new bar in meeting the growing demand for low-carbon, mobile, e-Boost solutions with grid-gap solutions.
Under development with NOMAD since last year, the companies collaborated to design and test the platforms’ architecture. The new e-Boost platforms are mobile, but offer the added benefit of battery energy storage to provide zero-emission EV charging.
The new solutions will allow EV charging for a wide range of markets including at events, in remote locations, for disaster response, or even for fleet management where charging flexibility for a large number of EVs is a priority.
Read more here.
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Vermont Technology Alliance Membership Update
The Vermont Technology Alliance works on behalf of its members and can carry out its mission through the support of its membership.
New members include IXIS Digital as a Partner Sponsor IXIS delivers data-based insights and optimization solutions to its clients through partnership consulting, advanced analytics, and proprietary tools.
Renewing as a Leadership Sponsor is Physicians Computing Company (PCC). Renewing as Partner Sponsors are Amazon and Vermont Information Processing (VIP). We appreciate and value the year-round foundational support of the VTTA from our annual Sponsorship Members such as PCC, VIP, and Amazon.
Renewing members include: Ecopixel, Open Approach, Tech Group and individuals Bernie Gracy, Jeff Guyette, Monique Priestley, Tina de la Torre and Sharon Trautwein.
Not a VTTA member yet? Then why not join now? Find more information and register here. You can also contact us at admin@vtta.org.
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VTel is a family-owned telecommunications company, based in Springfield, VT. We have been providing world-class technology with down-home service for over 125 years. We are proud to say that we have answered over 1,000,000 calls on the first ring. We’re Vermonters serving Vermonters. Our networks and services are Vermont-based, and we operate a 2,500-mile regional fiber-optic network that spans from Vermont to New York City, Boston, and Montréal. We carry traffic for over 20,000 connections, and our fibers serve some of the most data-intensive research universities, and medical facilities, and financial institutions in America.
Visit VTel at https://www.vermontel.com
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Useful Information & Links | |
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Last Call for 2024 Annual Business Economic Survey
The deadline has been extended to February 26 to take the annual small business economic survey presented by VTTA member Davis & Hodgdon CPAs in partnership with the Vermont Chamber of Commerce. The survey usually takes about 10 minutes to complete and anonymously captures the views of small- to medium-sized businesses throughout the state. Results from the survey are shared with state media and legislators.
Please click here to take the survey.
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Last Call for LaunchVT Applications
The deadline to submit applications for the 2024 LaunchVT program is Feb. 24.
LaunchVT is an early-stage business accelerator that runs from April through June. Entrepreneurs selected for the 2024 cohort will be coached by an industry expert and have access to over 200 people who can help them develop their startup. The accelerator wraps up with Demo Night, an annual celebration of entrepreneurship, where the cohort will pitch their businesses for a shot at over $100K in cash and professional services.
Apply here.
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Governor's Institutes of Vermont Welcomes High School Students to Apply for 2024 Summer Program
The Governor’s Institutes of Vermont (GIV) is now accepting applications for the 2024 offerings of its residential summer programs. Passionate and curious Vermont 9th, 10th, and 11th grade students are invited to apply. This year, GIV will be offering eight different summer Institutes including Engineering, Entrepreneurship, Environmental Science & Technology, Mathematical Sciences, and Technology & Design institute where students learn from industry-leading game designers, coders, and designers.
Learn more and apply at GIV.org.
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Accelerate Strategic Growth with the Fuel Platform
The Vermont Technology Alliance has partnered with York IE, a strategic growth and investment firm, to offer their online Fuel platform.
Fuel takes the same operational expertise that York IE provides to its startup clients and portfolio companies and makes it available on-demand in a strategic growth platform. Fuel users can access expert startup advice, in-depth market data, tailored playbooks, and cutting-edge AI tools. Through the partnership, the VTTA is offering its network a 25% discount to access this one-stop-shop platform.
Find more here.
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VTTA Career Center
Vermont Technology Alliance member companies are hiring, and when you visit the Career Center on the Vermont Technology Alliance website you can browse and search for these job openings and subscribe to updates. The Career Center on average features 200+ tech and non-tech jobs with Vermont Technology Alliance member businesses. Jobs available from VTTA members are listed at no charge in the Career Center as a member benefit.
Find the Career Center here.
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Find the Software Development Staff with Recruiting Services from VTTA and ScaleTech
The Vermont Technology Alliance has partnered with tech talent solution firm ScaleTech to offer talent solution services to help Vermont businesses find the software developers and engineers. they need to sustain and grow their businesses. ScaleTech focuses on developing a working partnership with businesses between 5 to 200 employees, and offers discounted rates for VTTA members.
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The VTTA Thanks Its Member/Sponsors
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