LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                               May 20, 1999
  
  
          TO:  Honorable Rene Oliveira, Chair, House Committee on Ways &
               Means
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB58 by Haywood (relating to incentives for an employer
               that establishes and operates a day-care center for
               children of employees or purchases child-care services
               for employees), As Engrossed
  
**************************************************************************
*  Two-year Net Impact to General Revenue Related Fundsfor SB58, As      *
*  Engrossed:  negative impact of $(5,580,000) 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                         $(1,140,000)  *
          *       2001                          (4,440,000)  *
          *       2002                          (4,704,000)  *
          *       2003                          (5,002,000)  *
          *       2004                          (5,324,000)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year    Probable Revenue Gain/(Loss) from   *
         *                      General Revenue Fund          *
         *                              0001                  *
         *      2000                             $(1,140,000) *
         *      2001                              (4,440,000) *
         *      2002                              (4,704,000) *
         *      2003                              (5,002,000) *
         *      2004                              (5,324,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would create franchise tax credits for corporate employers that
establish day care facilities or purchase day care services for children
of their employees.  Each qualifying taxpayer/employer would be allowed
an annual franchise tax credit of $50,000, 50 percent of the
corporation's child care expenditures, or 90 percent of the tax
otherwise due, whichever amount is least.
  
  
Methodology
  
The Comptroller's Office estimated fiscal impact based on actual revenue
impact in other states that have implemented similar child care credit
provisions.

The fiscal implication in fiscal year 2000 reflects a partial year of
credit eligibility for those corporate day-care services made available
after the bill's effective date.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   304   Comptroller Of Pub Accts
LBB Staff:         JK, BB, SD, BR, CT