OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

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

HB-5584

AN ACT ESTABLISHING A TAX CREDIT FOR EMPLOYERS THAT PROVIDE PAID FAMILY AND MEDICAL LEAVE BENEFITS AND CONCERNING FAMILY AND MEDICAL LEAVE ACCOUNTS.

AMENDMENT

LCO No.: 4015

File Copy No.: 600

House Calendar No.: 402


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 19 $

FY 20 $

Department of Revenue Services

GF - Cost

Less than 75,000

None

Department of Revenue Services

GF - Potential Revenue Loss

Up to $10 million

Up to $10 million

Department of Economic & Community Development

GF - Cost/Revenue Gain

See Below

See Below

Note: GF=General Fund

Municipal Impact:

Municipalities

Effect

FY 19 $

FY 20 $

Various Municipalities

Potential Revenue Loss

See Below

See Below

Explanation

The amendment results in the following:

Section 501 results in a potential revenue loss to municipalities that offer tax abatements for brownfield remediation. Any revenue loss would vary based on the abatement offered by such municipality, and the number of remediation sites in such municipality subject to the amendment's provisions.

As current law allows municipalities to recapture the lost revenue resulting from tax abatements related to brownfield remediation, any revenue loss could be offset by existing recapture provisions within an effected municipality.

Section 502 results in a potential state revenue loss of up to $10 million annually beginning as early as FY 19 by establishing a new brownfield remediation business tax credit. The actual impact is dependent on the execution, cost, and completion of credit-eligible projects, and may occur over multiple fiscal years.

Section 502 also results in a one-time cost to the Department of Revenue Services of less than $75,000 in FY 19 associated with: 1) updates to the online Taxpayer Service Center to allow the credit to be claimed against the Insurance Premiums, Corporation Business, and Public Service Companies taxes, and 2) programming costs for the agency's internal Integrated Tax Administration System.

Finally, Section 502 requires the Department of Economic and Community Development (DECD) to administer the tax credit program. The amendment allows the commissioner to charge a fee up to $5,000 to apply for a tax credit voucher. It is anticipated that this fee will be set at an amount necessary to cover the administrative costs to DECD for the program.

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.