LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 13, 2015 TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3230 by Rodriguez, Justin (Relating to the determination of eligible costs and expenses for purposes of the franchise tax credit for the rehabilitation of historic structures.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB3230, As Engrossed: a negative impact of ($408,088) through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 13, 2015
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB3230 by Rodriguez, Justin (Relating to the determination of eligible costs and expenses for purposes of the franchise tax credit for the rehabilitation of historic structures.), As Engrossed
TO: Honorable Jane Nelson, Chair, Senate Committee on Finance
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB3230 by Rodriguez, Justin (Relating to the determination of eligible costs and expenses for purposes of the franchise tax credit for the rehabilitation of historic structures.), As Engrossed
Honorable Jane Nelson, Chair, Senate Committee on Finance
Honorable Jane Nelson, Chair, Senate Committee on Finance
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB3230 by Rodriguez, Justin (Relating to the determination of eligible costs and expenses for purposes of the franchise tax credit for the rehabilitation of historic structures.), As Engrossed
HB3230 by Rodriguez, Justin (Relating to the determination of eligible costs and expenses for purposes of the franchise tax credit for the rehabilitation of historic structures.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB3230, As Engrossed: a negative impact of ($408,088) through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB3230, As Engrossed: a negative impact of ($408,088) through the biennium ending August 31, 2017.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 ($204,044) 2017 ($204,044) 2018 ($204,044) 2019 ($204,044) 2020 ($204,044)
2016 ($204,044)
2017 ($204,044)
2018 ($204,044)
2019 ($204,044)
2020 ($204,044)
All Funds, Five-Year Impact: Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2015 2016 ($204,044) 2.0 2017 ($204,044) 2.0 2018 ($204,044) 2.0 2019 ($204,044) 2.0 2020 ($204,044) 2.0
Fiscal Year Probable (Cost) fromGeneral Revenue Fund1 Change in Number of State Employees from FY 2015 2016 ($204,044) 2.0 2017 ($204,044) 2.0 2018 ($204,044) 2.0 2019 ($204,044) 2.0 2020 ($204,044) 2.0
2016 ($204,044) 2.0
2017 ($204,044) 2.0
2018 ($204,044) 2.0
2019 ($204,044) 2.0
2020 ($204,044) 2.0
Fiscal Analysis
The bill would amend Chapter 171 of the Tax Code, regarding the franchise tax, by modifying, for certain entities, the determination of eligible costs and expenses for the franchise tax credit for certified rehabilitation of certified historic structures. An entity that is exempt from the franchise tax because it is a nonprofit entity exempt from federal income tax may earn credit for eligible costs and expenses with respect to property considered to be tax exempt use property. The bill takes effect January 1, 2016.
Methodology
The Texas Historical Commission indicates they would need to hire an additional 2 FTEs to certify the eligibility of additional applications for the franchise tax credit that would result from the bill. The CPA indicates that the bill's provisions would have no significant fiscal impacts on franchise tax revenues.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies: 304 Comptroller of Public Accounts, 808 Historical Commission
304 Comptroller of Public Accounts, 808 Historical Commission
LBB Staff: UP, KK, SD, TBo
UP, KK, SD, TBo