OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-1033

AN ACT ESTABLISHING A TAX CREDIT FOR GREEN BUILDINGS.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 10

FY 11

Outyears

Department of Revenue Services

GF - Revenue Loss

None

None

Significant

Policy & Mgmt. , Off.

GF - Cost

40,000

40,000

40,000

Comptroller Misc. Accounts (Fringe Benefits)

GF - Cost

10,172

10,172

10,172

Note: GF=General Fund

Municipal Impact: None

Explanation

It is anticipated that the Office of Policy and Management (OPM) will require a half time analyst with associated salary of $40,000, plus fringe benefits1, to issue and track credit vouchers, adopt regulations and issue the report required by the bill.

The Out Years

This bill creates a corporation tax credit for investments in “green building” projects for FY 12 and FY 13. This credit is anticipated to result in a General Fund revenue loss of $1 million in FY 12 and $2 million per year thereafter.

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

1 The fringe benefit costs for state employees are budgeted centrally in the Miscellaneous Accounts administered by the Comptroller on an actual cost basis. The following is provided for estimated costs associated with additional personnel. The estimated non-pension fringe benefit rate as a percentage of payroll is 25. 43%. Fringe benefit costs for new positions do not initially include pension costs as the state's pension contribution is based upon the 6/30/08 actuarial valuation for the State Employees Retirement System (SERS) which certifies the contribution for FY 10 and FY 11. Therefore, new positions will not impact the state's pension contribution until FY 12 after the next scheduled certification on 6/30/2010.