Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance
committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they
are used for other purposes.
F I S C A L I M P A C T R E P O R T
SPONSOR Hernandez, J./Dixon
LAST UPDATED
ORIGINAL DATE 2/21/2025
SHORT TITLE
High Wage Jobs Tax Credit "Threshold
Job"
BILL
NUMBER House Bill 368
ANALYST Gray
ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT*
(dollars in thousands)
Agency/Program
FY25 FY26 FY27
3 Year
Total Cost
Recurring or
Nonrecurring
Fund
Affected
None
No fiscal
impact
No fiscal
impact
No fiscal
impact
No fiscal
impact
No fiscal
impact
No fiscal
impact
Parentheses ( ) indicate expenditure decreases.
*Amounts reflect most recent analysis of this legislation.
Sources of Information
LFC Files
Agency Analysis Received From
Economic Development Department (EDD) Agency Analysis was Solicited but Not Received From
Taxation and Revenue Department (TRD)
SUMMARY
Synopsis of House Bill 368
House Bill 368 (HB368) makes a minor adjustment to the high-wage jobs tax credit by changing
the definition of a “threshold job.” Threshold jobs are used in the tax credit to track a company’s
employment baseline and determine eligibility. The bill changes the timeframe for determining a
threshold job from a “calendar year” to the “first 52 weeks of employment.” The 52-week period
begins on the day the employee starts the job.
This bill does not contain an effective date and, as a result, would go into effect 90 days after the
Legislature adjourns, or June 20, 2025, if enacted.
FISCAL IMPLICATIONS
The bill will have no revenue implications. There may be administrative implications for the
Taxation and Revenue Department (TRD), but analysis has yet to be received from that agency.
House Bill 368 – Page 2
SIGNIFICANT ISSUES
In FY24, there were 89 claims by businesses for the high-wage jobs tax credit; the state spent
$11.2 million for an average cost per claim of $125.8 thousand. The value of the tax credit is
equal to 8.5 percent with a cap of $12.8 thousand per job. This implies that the high-wage jobs
tax credit supported about 900 jobs in FY24. This cost per job is about the same as the cost per
job of the state’s flagship economic development programs (i.e., the Local Economic
Development Act (LEDA) program and the Job Incentive and Training Program (JTIP)).
BG/hj