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Bill > HF916
MN HF916
MN HF916Individual income and corporate franchise taxes; income subtraction provided for certain commercial loans issued by financial institutions.
summary
Introduced
02/17/2025
02/17/2025
In Committee
02/17/2025
02/17/2025
Crossed Over
Passed
Dead
Introduced Session
94th Legislature 2025-2026
Bill Summary
A bill for an act relating to taxation; individual income and corporate franchise; providing a subtraction from income for certain commercial loans issued by financial institutions; amending Minnesota Statutes 2024, sections 290.0132, by adding a subdivision; 290.0134, by adding a subdivision.
AI Summary
This bill proposes a tax subtraction for financial institutions regarding certain commercial loans issued in Minnesota. Specifically, financial institutions (both S corporations and other types) can subtract income from commercial loans that meet two key criteria: the loan must be $5,000,000 or less in value, and the loan must be provided to a Minnesota resident or business and used primarily for business or agricultural purposes. The tax subtraction applies to taxable years beginning after December 31, 2024, which means it will first take effect in the 2025 tax year. By offering this income subtraction, the bill appears aimed at providing a financial incentive for local financial institutions to make smaller commercial loans to Minnesota-based businesses and agricultural enterprises, potentially supporting local economic development and access to capital for smaller businesses.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Author added Perryman (on 03/05/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0916&ssn=0&y=2025 |
| BillText | https://www.revisor.mn.gov/bills/text.php?number=HF916&version=0&session=ls94&session_year=2025&session_number=0&format=pdf |
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