LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 672 HLS 21RS 1036
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: May 1, 2021 11:37 AM Author: RISER
Dept./Agy.: Revenue
Subject: Tax Credit For Employer Hosted Blood Drives Analyst: Greg Albrecht
TAX CREDITS OR -$500,000 GF RV See Note Page 1 of 1
Establishes an income tax credit for employers who host blood drives for employees
Proposed law provides a $20 tax credit per verified blood donation by an employee at a blood drive hosted by an employer
and organized by a nonprofit blood bank organization. Employers hosting the blood drives can claim the nonrefundable
credit, and carry forward unused credit amounts for five years. The maximum amount of credit that can be granted is
$500,000 per year.
Applicable to tax years beginning on or after January 1, 2022, but no credits shall be granted on or after January 1, 2027.
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. $0 ($500,000) ($500,000) ($500,000) ($500,000) ($2,000,000)
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 ($500,000) ($500,000) ($500,000) ($500,000) ($2,000,000)
EXPENDITURE EXPLANATION
The Department of Revenue indicates that the costs to modify and test tax systems to incorporate an additional tax credit
as well as to set up its maximum credit cap would be approximately $51,000 of staff time.
REVENUE EXPLANATION
The Dept. of Revenue obtained data for business sponsored blood drives from a non-profit blood donor organization
servicing the areas of Baton Rouge, Lafayette, and Morgan City. This one organization reported 6,000 to 7,000 donations in
2018 and 2019. These donations constituted as much as 28% of the maximum of 25,000 donations that the $500,000
credit cap would support. Such donations were down in 2020 to only 3,600 (attributable to the Covid event), but are
expected to increase to approximately 4,200 in 2021. Presumably, they will eventually return to pre-2020 levels. Combined
with such drives by other organizations and the rest of the areas of the state, it seems likely that the aggregate credit cap
can be attained, and the full exposure of the state fisc is reflected in the table above.
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