Bill > SB2151

This bill amends Tennessee Code Annotated, Title 67, concerning tax credits, by modifying provisions related to loans made to community development financial institutions, which are entities certified by the U.S. Department of the Treasury's Community Development Financial Institutions Fund to promote economic development in distressed communities. Specifically, it adjusts the annual tax credit percentage for qualified loans to these institutions from three percent to three percent of the average unpaid principal balance for the life of the loan or fifteen years, whichever is shorter, and for qualified low-rate loans, it changes the annual tax credit from five percent to five percent of the average unpaid principal balance for the life of the loan or fifteen years, whichever is shorter. These changes are set to take effect on January 1, 2027, and will apply to tax years beginning on or after that date.