NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.



The LFC is only preparing FIRs on bills referred to the Senate Finance Committee, the Senate Ways and Means Committee, the House Appropriations and Finance Committee and the House Taxation and Revenue Committee. The chief clerks are responsible for preparing and issuing all other bill analyses.



Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Room 416 of the State Capitol Building.





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





SPONSOR: Boitano DATE TYPED: 2-11-99 HB
SHORT TITLE: Tax Credit for Home Child Care SB 201
ANALYST: Taylor

REVENUE



Estimated Revenue
 Subsequent

Years Impact

 Recurring

or Non-Rec

 Fund

Affected

FY99 FY2000
N.A. $ (5,600.0) $ (5,800.0) Recurring General Fund



(Parenthesis ( ) Indicate Revenue Decreases)



Duplicates/Conflicts with/Companion to/Relates to

SOURCES OF INFORMATION



Taxation and Revenue Department (TRD)



SUMMARY



Synopsis of Bill



Senate Bill 201 proposes a new non-refundable income tax credit for persons taking care of children under the age of 12 at home. Either the person claiming the credit or his (her) spouse may not have been employed at any time during the year in which the credit is claimed. The bill caps the credit at $350 per family. The credit is not refundable, meaning that it cannot exceed the amount paid in personal income taxes during the year the contribution is made. The bill would become effective January 1, 1998.



FISCAL IMPLICATIONS



TRD has estimated that this bill would decrease general fund revenues by $5.6 million in the first year, and by $5.8 million the following. They base the estimate on demographic information from the current population survey and other data sources. (See TRD FIR for details).



ADMINISTRATIVE IMPLICATIONS



TRD reports that to administer the provisions of this bill, they would need to hire 1.2 FTE. The estimated administrative cost is $55 thousand.



OTHER SUBSTANTIVE ISSUES