LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 18, 1999
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB9 by Duncan (relating to a franchise tax credit for
               corporations that provide financing for certain before
               and after school programs), As Engrossed
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  SB9, As Engrossed:  negative impact of $(6,180,000) through the       *
*  biennium ending August 31, 2001.                                      *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                         $(1,263,000)  *
          *       2001                          (4,917,000)  *
          *       2002                          (5,210,000)  *
          *       2003                          (5,540,000)  *
          *       2004                          (5,896,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                             $(1,263,000) *
         *      2001                              (4,917,000) *
         *      2002                              (5,210,000) *
         *      2003                              (5,540,000) *
         *      2004                              (5,896,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would create a franchise tax credit for corporations that
contribute to the operation of a "school-age child care" program operated
by a nonprofit organization or a local government.  Credit would be
given for expenditures to construct, equip, and operate such a program.

The credit would be equal to the lesser of 30 percent of qualified
expenditures, or 50 percent of the tax otherwise due.  Qualified
expenditures made after January 1, 2000 would be eligible for the
credit.
  
  
Methodology
  
This note is based on analysis completed by the Comptroller's Office of
other states' experience in providing a tax credit similar to that
proposed by the bill.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, BB, BR, CT