OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-1133

AN ACT CONCERNING INNOVATIVE ENERGY TECHNOLOGIES.

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 10 $

FY 11 $

Department of Revenue Services

GF - Revenue Impact

See Below

See Below

Energy Conservation and Load Management Fund

Energy Efficiency Fund - Revenue Loss

See Below

See Below

Note: GF=General Fund

Municipal Impact: None

Explanation

This bill establishes a credit against the corporation business tax for corporations that purchase qualified voltage regulation technologies. This will result in a revenue loss to the General Fund from the corporation business tax. However, the bill requires that an amount equal to the tax credits provided be transferred from the Energy Conservation and Load Management Fund to the General Fund. This will result in a revenue gain to the General Fund and a cost to the Energy Conservation and Load Management Fund equal to the credits claimed. Since there is no limit established for the purchase of a qualified voltage regulation technology, this could have a potentially significant impact to the funds ability to continue with current programs.

The Out Years

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

Source: Energy Conservation and Management Board (ECMB)