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AB 1398 & AB 579 Appropriations Analyses

New analyses were posted today for AB 1398 and AB 579 in time for their Assembly Appropriations Committee hearing today. The AB 1398 Analysis explains how the bill achieves revenue neutrality for LAMBRAs while making the significant improvement of eliminating the net increase in jobs requirement:

Fiscal Impact:
1)FTB estimates that the provision that removes the $2 million limit on qualifying wages will reduce revenues by $1 million.
2)FTB estimates that the provision that allows hiring credits to reduce tax liabilities below the AMT will reduce revenues by $2 million.
3)FTB estimates that the provision reducing the rate from 50% to 49% for first year employment will increase revenues by about $3 million.
4)Eliminating the net job increase requirements for LAMBRAs will likely result in General Fund revenue losses potentially in the range of $250,000 per year.

The bill reduces the first year hiring credit from 50% to 49% for the LAMBRAs thus saving the money to allow for the other potential increases.

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