LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 527 HLS 21RS 1006
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 26, 2021 3:54 PM Author: CREWS
Dept./Agy.: Economic Development
Subject: Digital Interactive Media and Software Tax Credit Analyst: Greg Albrecht
TAX CREDITS OR DECREASE GF RV See Note Page 1 of 1
Expands eligibility for the digital interactive media and software tax credit to include information technology services
Current law provides a refundable tax credit of 25% for qualified in-state payroll, and an 18% refundable credit for other
qualified production expenditures.
Proposed law expands the eligibility of the credit to information technology services used in the design, development,
application, implementation, support, and management of computer-based information services.
Effective upon governor's signature.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 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 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. DECREASE DECREASE DECREASE DECREASE DECREASE
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
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
According to the Dept. of Economic Development, the bill appears to expand eligibility to the digital media tax credit
program to routine information technology activities as opposed to project/product specific activities that the program
currently targets. The expansion may include previously denied activities by firms participating in the program with regard to
other accepted activities and expenditures.
The amount of expenditures that the bill may allow into the program is speculative, but if applicable to routine IT activities
(the bill adds “computer-based information systems” as an example of digital interactive media), the credit costs to the state
could increase significantly. Current credit realizations have been approximately $30 million per year.
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}
Christopher A. Keaton
x 13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer


Statutes affected:
HB527 Original: 47:6022(C)(5)