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: SB783 by Moncrief (relating to a franchise tax credit for
wages paid to persons with certain disabilities), As
Engrossed
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Fundsfor *
* SB783, As Engrossed: negative impact of $(456,000) 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 $0 *
* 2001 (456,000) *
* 2002 (1,069,000) *
* 2003 (1,107,000) *
* 2004 (1,147,000) *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Revenue Gain/(Loss) from *
* General Revenue Fund *
* 0001 *
* 2000 $0 *
* 2001 (456,000) *
* 2002 (1,069,000) *
* 2003 (1,107,000) *
* 2004 (1,147,000) *
*****************************************************
Fiscal Analysis
The bill would authorize a franchise tax credit for hiring certain
disabled or blind individuals. The credit would be equal to 10 percent
of the wages of the eligible employees hired.
A corporation could qualify for the credit by hiring individuals who are
eligible for federal Supplemental Security Income (SSI) benefits on the
basis of a disability or blindness, or who receive Social Security
disability insurance benefits. The corporation could claim the credit
for the first two years of employment of the eligible employee.
Methodology
The Comptroller's Office provided an estimate of the bill's fiscal impact
based on Social Security Administration data on SSI recipients, Census
Bureau data on the number and average wage income of Texas SSI
recipients, and Internal Revenue Service data on the corporate share of
overall wages. Data from these three sources were matched to determine
the final impact.
The bill would have no impact in fiscal 2000 because its provisions would
become effective after the last accounting year closing date that forms
the basis of the fiscal 2000 franchise tax report. The impact in fiscal
2001 is reduced to reflect a phase-in effect caused by differences among
corporate accounting years.
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