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FISCAL NOTE
Senate Bill 43
Committee: Finance and Taxation EducationSponsor: Senator Bobby Singleton
Analyst: Jennifer Farish Date: 03/17/2023
Senate Bill 43as introduced would allow a credit against the state income tax or the financial
institution excise tax in an amount equal to the federal income tax credit claimed for the Work
Opportunity Tax Credit (WOTC) Program, up to a maximum of $1,000 per individual hired that
is included within the targeted groups pursuant to the federal program. This would reduce
receipts to the Education Trust Fund (ETF) and the State General Fund (SGF) by a combined
maximum of $10,000,000 annually beginning January 1, 2024 and ending December 31,2025,
unless the federal WOTC program is extended by Congress. The credit is not refundable or
transferable, and will not be allowed to decrease a taxpayer's tax liability to less than zero. The
amount of the reduction to the ETF and SGF will be dependent upon whether the tax credits
claimed are applied against income tax or the financial institution excise tax.
Additionally, this bill will increase the administrative obligations of the Department of Revenue
to adopt rules necessary to carry out the provisions of this bill.