Bill > SF3364

This bill provides a tax subtraction for financial institutions (specifically S corporations and other financial institutions) on income generated from certain small commercial loans. The bill allows these institutions to subtract income from loans that meet two specific criteria: (1) the loan must be $5,000,000 or less in value, and (2) the loan must be provided to a person or business located in Minnesota and used primarily for business or agricultural purposes. This tax provision is designed to potentially encourage local lending and support small businesses and agricultural enterprises by providing a financial incentive for financial institutions to issue smaller commercial loans within the state. The new tax subtraction will become effective for taxable years beginning after December 31, 2024, meaning it will first apply to the 2025 tax year. The bill amends two sections of Minnesota tax statutes (290.0132 and 290.0134) to implement this new subtraction provision.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3364&ssn=0&y=2025