Vt. Stat. Ann. tit. 18, § 8729

Any payment to an eligible family for the support of a person with a developmental disability constitutes a State benefit and shall not be deemed to be income for the purposes of State taxation or of determining eligibility for any income-related State benefits, but may be included in household income for purposes of 32 V.S.A. chapter 154 as provided in section 6061 of that chapter.