Bill > HB0691

This bill modifies the tax credit calculations for financial institutions providing loans to eligible housing entities in Tennessee. Specifically, the bill changes two existing tax credit provisions: first, for standard qualified loans, financial institutions can now claim a 3% annual tax credit based on the month-end average unpaid principal balance, instead of a previous calculation method. Second, for qualified low-rate loans, financial institutions can claim a 5% annual tax credit, also calculated using the month-end average unpaid principal balance. In both cases, the tax credit can be claimed for either the life of the loan or fifteen years, whichever is shorter. These tax credits are designed to incentivize financial institutions to provide loans to housing entities, potentially supporting affordable housing initiatives. The bill will take effect on January 1, 2026, and will apply to tax years beginning on or after that date, giving financial institutions and tax authorities time to prepare for the new calculation method.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB0691&ga=114