BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 437 (Atkins) - Research and Development: Small Business Grant
Program.
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|Version: July 13, 2015 |Policy Vote: GOV. & F. 6 - 0 |
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|Urgency: No |Mandate: No |
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|Hearing Date: August 27, 2015 |Consultant: Robert Ingenito |
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*********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
The following information is revised to reflect amendments
adopted by the committee on August 27, 2015
Bill
Summary: AB 437 would permit qualified small businesses to
convert research and development credits into cash grants.
Fiscal
Impact:
The Franchise Tax Board (FTB) estimates that the
previous version of the bill would result in General Fund
revenue losses of $22 million in 2015-16, and $27 million
in 2016-17. By delaying the implementation date one year,
the revenue impacts would themselves be delayed by one
year, and would likely be of similar magnitude.
FTB estimates that the bill would result in one-time
General Fund administrative costs of $664,000, related to
the creation of the grant program. Ongoing costs would be
AB 437 (Atkins) Page 1 of
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$344,000 annually, beginning in 2017-18.
Author
Amendments: Mitigate the risk of taxpayer fraud, delay the
implementation date until January 1, 2017, and make technical
changes.
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