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| SPONSOR: | HTRC | DATE TYPED: | 3-12-99 | HB | CS280\HTRC | ||
| SHORT TITLE: | One-time Job Creation Tax Credit | SB | |||||
| ANALYST: | Taylor | ||||||
| Subsequent
Years Impact |
Recurring
or Non-Rec |
Fund
Affected | ||
| FY99 | FY2000 | |||
| N/A | $ (9,000.0) | $ 0.0 | Non-Recurring | General Fund |
| N/A | $ 9,000.0 | $ 0.0 | Non-Recurring | Oil and Gas Tax Credit Fund |
(Parenthesis ( ) Indicate Revenue Decreases)
Relates to HTRC substitute for HB281 & HB436.
SOURCES OF INFORMATION
Taxation and Revenue Department (TRD)
Oil Conservation Division, Energy Minerals and Natural Resources Department (OCD)
SUMMARY
Synopsis of Bill
The House Taxation and Revenue Committee substitute for HB-280 enacts a one-time tax credit for the completion of new crude oil and natural gas wells. The purpose of the credit is to stimulate economic development and provide jobs.
The bill establishes that the credit is $15 thousand and is to be applied against oil and gas emergency school tax. A new well qualifies for the credit if (1) the OCD certifies that the operator applying for the credit commenced drilling after January 1, 1999 and completed the well before July 1, 2000; (2) the operator has a current oil and gas emergency school tax liability against which the credit can be applied; (3) the well is one of the first 600 wells drilled between January 1, 1999 and July 1, 2000.
New wells include oil and gas wells for which drilling began after January 1, 1999 and before July 1, 2000 or horizontal wells that were recompleted from a vertical well after by drilling operations that began after January 1, 1999 and before July 1, 2000
The bill creates the "oil and gas tax credit fund" and establishes that TRD is responsible for its administration. It appropriates $9 million from the general fund to the oil and gas credit fund for expenditures in FY 1999 through FY 20001. TRD is required to reimburse the general fund from the oil and gas tax credit fund for the credits used against the oil and gas emergency tax. Unexpended and unencumbered balances revert to the general fund.
The bill carries an emergency clause and a delayed repeal for July 1, 2001.
FISCAL IMPLICATIONS
The fiscal implications of this bill are limited to the $9 million one-time transfer from the general fund to the oil and gas tax credit fund. Because the transfer is one-time, the impact is non-recurring. The impact could be less than the full $9 million if less than 600 wells are drilled during the eligible time period.
ADMINISTRATIVE IMPLICATIONS
Discussions with TRD staff suggest that the administrative implications are relatively small. They say that they may need $20 thousand for computer programming and some part-time help to assist with the processing.
BT/njw