LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 15, 1999 TO: Honorable Bill Ratliff, Chair, Senate Committee on Finance 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 Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB783, As Introduced: negative impact of $(456,000) through the * * biennium ending August 31, 2001. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** 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: LBB Staff: JK, BB, BR, CT