OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http: //www.cga.ct.gov/ofa

sSB-652

AN ACT CONCERNING SMALL BUSINESS RETIREMENT PLANS.

AMENDMENT

LCO No.: 4258

File Copy No.: 603

Senate Calendar No.: 399

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 09 $

FY 10 $

Department of Revenue Services

GF - Revenue Loss

10 million

10 million

Department of Revenue Services

GF - Cost

475, 000

200, 000

Note: GF=General Fund

Municipal Impact: None

Explanation

The amendment 1) reduces from 10 to 5 the number of new full time jobs an employer must create in order to qualify for the corporation business tax job creation credit and 2) creates a personal income tax job creation credit. This is estimated to result in an annual General Fund revenue loss from the corporation business tax and the personal income tax of approximately $10 million.

Enacting the credit is also expected to result in the following administrative costs to the Department of Revenue Services (DRS) :

● A one-time cost of approximately $200, 000 for systems development and computer programming in FY 09.

● An ongoing cost of approximately $275, 000 per year beginning in FY 09 to process claims.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose.