LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 17 HLS 243ES 30
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: November 12, 2024 11:42 AM Author: RISER
Dept./Agy.: Revenue
Subject: Earned Income Tax Credit: Immediate Repeal Analyst: Benjamin Vincent
TAX CREDITS OR +$67,000,000 RV See Note Page 1 of 1
Accelerates termination of the higher amount of the earned income tax credit (Item #5)
Current law provides a refundable credit against Individual Income tax equal to 5% of the federal Earned Income Tax Credit
(EITC) for which the taxpayer is eligible. Current law provides that for tax years beginning after December 31, 2030, the
state credit will equal 3.5% of the federal credit.
Proposed law disallows the credit for tax years beginning after December 31, 2024.
Applicable to taxable periods beginning on or after January 1, 2025. Effective upon governor’s signature.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. $0 $66,300,000 $66,300,000 $66,300,000 $66,300,000 $265,200,000
Agy. Self-Gen. $0 $700,000 $700,000 $700,000 $700,000 $2,800,000
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $67,000,000 $67,000,000 $67,000,000 $67,000,000 $268,000,000
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
Tax Exemption Budget data show that approximately $67.0 million have been claimed in typical recent years. Proposed law
would fully and immediately end the credit, increasing revenues in FY26 and subsequent years by $67.0 million.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Legislative Fiscal Officer
or a Net Fee Decrease {S}


Statutes affected:
HB17 Original: 47:8(A)(2)