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F I S C A L I M P A C T R E P O R T





SPONSOR: Maes DATE TYPED: 01/24/00 HB
SHORT TITLE: Technology Jobs Tax Credit Act SB 28
ANALYST: Williams


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01



(Parenthesis ( ) Indicate Expenditure Decreases)



REVENUE



Estimated Revenue
Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY00 FY01
$ (16,000.0) $ (18,000.0) Recurring General Fund



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to SB25,SB42, SB43,HB52



SOURCES OF INFORMATION



Taxation and Revenue Department





SUMMARY



Synopsis of Bill



Endorsed by the Economic and Rural Development and Telecommunications Committee. Authorizes two credits, each equal to 5% of qualified expenditures, for research and development firms. These credits are doubled if the firm is located in a rural area. Eligible expenditures are based on purchase price or "reasonable value" of the equipment at time of installation. The credits can be rolled over.



The first credit, the "basic credit", can be applied against gross receipts, compensating and withholding taxes. The second credit, the "additional credit", would be available if payroll increases by at least $50,000 for every $1,000,000 of expenditure claimed and can be taken against personal or corporate income taxes. The effective date of the bill would be July 1, 2000.



Significant Issues



Analysis assumes Sandia National Laboratories would not qualify.



FISCAL IMPLICATIONS



Taxation and Revenue Department estimates recurring revenue loss to the General Fund is estimated at $16,000 in FY01 and $18,000 for a full year.



ADMINISTRATIVE IMPLICATIONS



TRD notes some additional systems costs as well increased audit and compliance costs.



AW/njw