OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sSB-652
AN ACT ESTABLISHING A TAX CREDIT FOR DONATIONS TO
THE ROBERTA B. WILLIS SCHOLARSHIP PROGRAM.
Primary Analyst: CW 4/5/21
Contributing Analyst(s): SB
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Department of Revenue Services GF - Potential
Revenue Loss
Up to 16
million
Up to 32
million
Higher Ed., Off.; Constituent
Units of Higher Education
GF - See Below See Below See Below
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which establishes a tax credit against the corporation
business and personal income taxes for certain donations, results in a
potential General Fund revenue loss of up to $16 million in FY 22 and
up to $32 million in FY 23 and annually thereafter.
1
It also results in a
potential revenue gain to the Roberta B. Willis Scholarship program
donation account as early as FY 21; beginning as early as FY 22 the
potential revenue gain will be offset by a forced lapse in the account in
a commensurate amount, making the net impact to the scholarship
account zero at that time.
2
1
The bill caps the total annual credits for the first income and taxable year at $16
million and $32 million for subsequent years. It is assumed that this equates to a $16
million cap for the 2021 income and taxable year and a $32 million cap for all
subsequent income and taxable years.
2
Beginning in FY 22, the Office of Higher Education must lapse an amount equal to
the amount of donations received during the previous calendar year. 2021SB-00652-R000278-FN.DOCX Page 2 of 2
The bill establishes a tax credit equal to 40% of eligible amounts
donated (up to $60,000 per taxpayer) to the Roberta B. Willis Scholarship
program donation account. To the extent such eligible donations are
made, there is a General Fund revenue loss of up to $16 million in FY 22
and up to $32 million in FY 23 and annually thereafter. The actual
amount and timing of any revenue loss is dependent upon the amount
and timing of any credit-eligible donations and subsequent credit claims.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to the $32 million cap on total tax
credits allowed annually under the bill.