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| SPONSOR: | Maes | DATE TYPED: | 02/20/01 | HB | |||
| SHORT TITLE: | Technology Startup Tax Credit | SB | 288 | ||||
| ANALYST: | Williams | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY01 | FY02 | |||
| $ (1,200.0) | $ (1,300.0) | Recurring | General Fund | |
(Parenthesis ( ) Indicate Revenue Decreases)
_______________________________________________________________________________________
SOURCES OF INFORMATION
LFC Files
Taxation and Revenue Department
Economic Development Department
SUMMARY
Synopsis of Bill
This credit was enacted in limited form last session. Senate Bill 288 provides a credit equal to gross receipts taxes, compensating or withholding taxes which may be carried forward to up to five years. A qualifying business must spend at least 20% of total revenue on research and development, employ fewer than 50 persons and have fiscal year revenue of $10 million or less.
Expenditures through an IRB or other tax incentives are not eligible. Firms that sell stock in an IPO or takeover are disqualified.
FISCAL IMPLICATIONS
General fund recurring revenues are projected to be reduced by $1,200.0 in FY02 and $1,300.0 in FY 03.
TECHNICAL ISSUES
The attached TRD analysis outlines a number of technical concerns about the bill.
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Attachment