Bill
Bill > SB0784
TN SB0784
TN SB0784AN ACT to amend Tennessee Code Annotated, Section 67-4-2109, relative to tax credits for financial institutions.
summary
Introduced
02/04/2025
02/04/2025
In Committee
Crossed Over
Passed
05/27/2025
05/27/2025
Dead
Signed/Enacted/Adopted
05/27/2025
05/27/2025
Introduced Session
114th General Assembly
Bill Summary
As enacted, changes the amounts of the franchise and excise tax credits allowed to financial institutions from certain percentages of the unpaid principal balance of certain qualified loans made to eligible housing entities to certain percentages of the month-end average unpaid principal balance of such loans; makes other related revisions. - Amends TCA Section 67-4-2109.
AI Summary
This bill modifies the tax credit provisions for financial institutions making loans to eligible housing entities in Tennessee by changing how the tax credits are calculated. Specifically, the bill replaces the existing tax credit calculation with a new method that allows financial institutions to claim a 3% annual tax credit based on the month-end average unpaid principal balance for qualified loans, and a 5% annual tax credit for qualified low-rate loans. These credits can be claimed for either the life of the loan or fifteen years, whichever is shorter. The changes will take effect on January 1, 2026, and will apply to tax years beginning on or after that date. By using the month-end average unpaid principal balance instead of the previous calculation method, the bill provides a potentially more dynamic and precise way of determining tax credits for financial institutions supporting housing initiatives.
Committee Categories
Budget and Finance
Sponsors (1)
Last Action
Comp. became Pub. Ch. 496 (on 05/27/2025)
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0784&ga=114 |
| BillText | https://publications.tnsosfiles.com/acts/114/pub/pc0496.pdf |
| Amendment 1-0 to SB0784 | https://www.capitol.tn.gov/Bills/114/Amend/SA0448.pdf |
| Fiscal Memo for SA0448 (3979) | https://www.capitol.tn.gov/Bills/114/Fiscal/FM0169.pdf |
| Fiscal Note - HB0691 | https://www.capitol.tn.gov/Bills/114/Fiscal/HB0691.pdf |
| BillText | https://www.capitol.tn.gov/Bills/114/Bill/SB0784.pdf |
Loading...