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