OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

sSB-75

AN ACT INCREASING THE CAP ON THE NEIGHBORHOOD ASSISTANCE ACT TAX CREDIT PROGRAM AND EXTENDING THE PROGRAM TO PASS-THROUGH ENTITIES.

AMENDMENT

LCO No.: 5396

File Copy No.: 314

House Calendar No.: 411

Senate Calendar No.: 222


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Department of Revenue Services

GF - Cost

None

3,000-5,000

Department of Revenue Services

GF - Revenue Loss

Up to 5.0 million

Up to 5.0 million

Municipal Impact: None

Explanation

The amendment strikes the underlying bill and its associated fiscal impact. Instead, the amendment results in the fiscal impact described below.

The amendment expands the existing Neighborhood Assistance Act (NAA) tax credit program by increasing, from $5.0 million to $10.0 million, the aggregate annual cap on the amount of credits that may be awarded, and by allowing more taxpayers to claim the credits. This results in a revenue loss of up to $5.0 million annually beginning in FY 15, and a one-time cost to the Department of Revenue Services (DRS) of $3,000-$5,000 in FY 16 only.1

The one-time cost of $3,000-$5,000 to DRS is for personal income tax form alteration and changes to the online Taxpayer Service Center (TSC) in order to accommodate the provisions of the bill extending the credit to pass-through business entities.

Sources:

Department of Revenue Services

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. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

1 According to DRS, credit-eligible donations under the NAA program currently exceed the $5.0 million cap.