Colorado Legislative Council Staff
STATE
FISCAL IMPACT
Drafting Number: Prime Sponsor(s): |
LLS 99-0291 Rep. Hefley
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Date: Bill Status: Fiscal Analyst: |
January 12, 1999 House Finance Steve Tammeus (866-2756) |
TITLE: CONCERNING A STATE INCOME TAX CREDIT FOR THE EXPENSES OF AN EMPLOYER INCURRED IN PROVIDING ENGLISH LANGUAGE TRAINING FOR THE EMPLOYER'S EMPLOYEES.
Fiscal Impact Summary |
FY 1998/99 |
FY 1999/2000 |
FY 2000/2001 |
State Revenues General Fund |
Income Tax Revenue Reduction |
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State Expenditures General Fund |
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FTE Position Change |
0.0 FTE |
0.0 FTE |
0.0 FTE |
Other State Impact: TABOR |
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Effective Date: 90 days after adjournment unless a referendum petition is filed. Provides income tax credit effective January 1, 1999. |
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Appropriation Summary for FY 1999-2000: None |
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Local Government Impact: None |
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Summary of Legislation
This bill, for income tax years commencing on January 1, 1999, allows an employer of any employee receiving qualified language training an income tax credit in an amount equal to 30.0 per cent of the employer's qualified language training expenses. For any given tax year, the maximum amount of the credit is to not exceed $250 per employee. Any unused portion of the credit may be carried forward for five income tax years following the unused credit year.
State Revenues
This bill will decrease General Fund income tax revenue beginning FY 1998-99. The Department of Revenue does not currently maintain data regarding businesses that provide, or will provide, qualified language training to employees. Therefore, the amount of that revenue reduction has not been estimated.
State Expenditures
This bill does not require the Department of Revenue to maintain data regarding businesses that provide qualified language training. The department anticipates the number of businesses to claim this income tax credit will be minimal. Therefore, any associated administrative expenses will be absorbed within existing resources.
Other State Impacts
1) The income tax revenue reduction identified in this bill will mean a reduction in the amount of state funds required to be refunded to taxpayers under the terms of TABOR, and less state funds available for capital construction needs.
2) A state income tax reduction will increase a taxpayer's federal income tax obligation.
State Appropriations
This fiscal note would imply no new state appropriations are required for FY 1999-2000.
Departments Contacted
Revenue Higher Education Education