Vermont R&D Grants Explorer
A guide to competitive and technology-focused grants for Vermont businesses.
A Note on Grant Types
Nearly all research and development (R&D) funding is competitive, meaning applicants are scored against each other. This guide focuses on those competitive opportunities, as "entitlement" grants (automatic funding for all who qualify) are not a common mechanism for R&D business support.
These are the largest sources of early-stage, non-dilutive (equity-free) R&D funding. Vermont offers key programs to help you apply for and supplement these federal awards.
SBIR / STTR Programs
Federal ProgramThe Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are the federal government's primary way to fund R&D at small businesses.
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Funding:
- Phase I (Proof of Concept): $50,000 - $275,000
- Phase II (Development): $750,000 - $1.8M+
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Eligible Use:
High-risk, high-reward research and development of new technologies. STTR requires partnership with a research institution (like UVM).
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Who is Eligible:
U.S.-based, for-profit small businesses (fewer than 500 employees).
Vermont EPSCoR Phase (0)
State SupportThis state-level grant is designed to help you prepare a stronger application for the federal SBIR/STTR programs.
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Funding:
Up to $15,000
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Eligible Use:
Support for writing and preparing a competitive federal SBIR/STTR Phase I application. Also provides reviewer comments.
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Who is Eligible:
Vermont-based small businesses intending to apply for a federal SBIR/STTR grant.
Elevate Vermont
State SupportProvides matching funds to businesses that have *already won* a federal SBIR/STTR award to help move from research to market.
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Funding:
Provides matching funds (amount varies).
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Eligible Use:
Commercialization activities not covered by the federal grant, such as marketing, product testing, IP protection, and scaling.
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Who is Eligible:
Vermont businesses that have secured a federal SBIR/STTR award.
These competitive grants are funded and managed by Vermont state agencies or their partners to boost innovation within specific sectors.
WLEI Business Enhancement Grant
State ProgramThe Working Lands Enterprise Initiative (WLEI) funds projects to grow Vermont's farm and forest economy.
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Funding:
$10,000 - $50,000
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Eligible R&D Use:
Research and development, including testing new systems/technology, and purchasing new animal genetics, seed, or root stock.
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Who is Eligible:
Vermont-based farm, food, and forest product businesses.
ACCD Tech-Based Economic Development
State ProgramA state program aimed at accelerating growth in Vermont's technology sector. (Program details and funding cycles may vary).
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Funding:
Varies by initiative.
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Eligible Use:
Often focused on scaling tech businesses, commercialization, and workforce development in the tech sector.
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Who is Eligible:
Vermont-based technology companies.
Vermont EPSCoR Pilot Awards
State ProgramFunds collaborative research projects between Vermont higher education institutions and small businesses.
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Funding:
Varies (typically seed funding).
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Eligible Use:
Collaborative research projects that align with Vermont EPSCoR's current research focus (e.g., environmental resilience, advanced manufacturing).
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Who is Eligible:
Partnerships between VT small businesses and faculty at VT higher-ed institutions.
While not always direct R&D grants, these programs provide funding or services for business and technology improvements, which can support your innovation goals.
RDC SBTAE Grant
Technical AssistanceThe Small Business Technical Assistance Exchange (SBTAE) from the Regional Development Corporations (RDCs) of Vermont funds consulting services.
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Funding:
Up to $4,000 for projects under $10,000.
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Eligible Tech Use:
Technology and software consulting, reconfiguring manufacturing processes, website/e-commerce design.
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Who is Eligible:
Vermont small businesses (under 50 employees, revenues $5k - $5M).
VEDA Financing (Loans)
Business LoanThe Vermont Economic Development Authority (VEDA) provides low-interest loans, not grants, but is a key partner for business growth and capital projects.
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Funding:
Various loan programs, up to $500,000+ for small businesses.
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Eligible Use:
Working capital, equipment purchase, real estate. Can be used to finance the business side of R&D commercialization.
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Who is Eligible:
Start-ups and expanding Vermont businesses in many sectors, including IT and manufacturing.
Who We Are:
Swanson Reed is one of the largest Specialist R&D Tax Credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D Tax Credit consulting services to our clients. We have been exclusively providing R&D Tax Credit claim preparation and audit compliance solutions for over 30 years.
Swanson Reed’s Vermont office provides R&D tax credit consulting and advisory services to Burlington, South Burlington, Rutland, Barre and Montpelier.
Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs. For more information please click here or contact your usual Swanson Reed representative.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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R&D Tax Credit Preparation Services
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725. Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.
R&D Tax Credit Audit Advisory Services
creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.
Our Fees
Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
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