TennesseeLaw sets tax credits for loans to community development lenders
For tax years beginning on or after January 1, 2027, financial institutions receive annual tax credits for eligible loans to federally certified community development lenders.
What it does
For tax years beginning on or after January 1, 2027, financial institutions receive annual credits of 3% for eligible loans or 5% for eligible low-rate loans to Treasury-certified community development lenders. Credits use the average unpaid loan balance, excluding interest, and last for the loan's life or 15 years, whichever ends first.
Argument forAnnual tax credits could make eligible loans to certified community development lenders more attractive to financial institutions.
Argument againstLenders could stop receiving annual credits after 15 years even while community development borrowers still owe money.
More detail
Financial institutions receive annual tax credits of 3% for eligible loans and 5% for eligible low-rate loans. The credits cover financial institutions making loans that meet the law's eligibility rules. Borrowers must be community development financial institutions certified by the U.S. Treasury's Community Development Financial Institutions Fund. The percentages apply to the average month-end loan balance during the lending institution's fiscal year, excluding interest. The law takes effect January 1, 2027, and applies to tax years beginning on or after that date. Annual credits end when the loan ends or after 15 years, whichever comes first.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 26Pub. Ch. 1009Latest
- May 26Effective date(s) 01/01/2027
- May 19Signed by Governor Bill Lee.Became Law
- May 7Transmitted to Governor for his action.To Governor
- May 5Signed by Senate SpeakerMajor
- Apr 30Signed by H. SpeakerMajor
- Apr 28Enrolled; ready for sig. of H. Speaker.Minor
- Apr 22H. adopted am. (Amendment 1 - HA0619)Major
- Vote recorded FLOOR VOTE: MESSAGE CALENDAR 2 CONCUR IN SENATE AMENDMENT # 1 4/22/2026 Passed. Result: pass.Lower
- Vote recorded FLOOR VOTE: as Amended Third Consideration 4/22/2026 Passed. Result: pass.Upper
- Vote recorded HOUSE CALENDAR & RULES COMMITTEE: H. Placed on Regular Calendar for 4/22/2026 4/16/2026. Result: fail.Lower
- Vote recorded FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/22/2026 Passed. Result: pass.Lower
- Apr 22Passed H., as am., Ayes 87, Nays 1, PNV 4Passed Senate
- Apr 22Engrossed; ready for transmission to Sen.Minor
- Apr 22Received from House, Passed on First ConsiderationMinor
- Apr 22Senate substituted House Bill for companion Senate Bill.Major
- Apr 22Senate adopted Amendment (Amendment 1 - SA1103)
- Apr 22Passed Senate as amended, Ayes 30, Nays 0Passed House
- Apr 22H. Placed on Message Calendar #2 for 4/22/26
- Apr 22H. concurred in S. am. no. 1 Ayes 88, Nays 1 PNV 1 HB2156
- Apr 17
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS COMMITTEE: Rec. for pass; ref to Finance, Ways, and Means Committee 4/17/2026 Passed. Result: pass.Lower
- Vote recorded HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE: Rec. for pass by s/c ref. to Finance, Ways, and Means Committee 4/17/2026 Passed. Result: pass.Lower
- Apr 16H. Placed on Regular Calendar for 4/22/2026
- Apr 15Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/15/2026
- Apr 15Sponsor(s) Added.Minor
- Apr 15Rec for pass by s/c ref. to Finance, Ways, and Means CommitteeMinor
- Apr 15Placed on cal. Finance, Ways, and Means Committee for 4/15/2026
- Apr 15Rec. for pass; ref to Calendar & Rules CommitteeMinor
- Apr 15Placed on cal. Calendar & Rules Committee for 4/16/2026
- Apr 8Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2026
- Mar 18Placed behind the budget
- Mar 11Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/18/2026
- Mar 9Rec. for pass. if am., ref. to Finance, Ways, and Means CommitteeMinor
- Vote recorded HOUSE GOVERNMENT OPERATIONS COMMITTEE: Rec. for pass. if am., ref. to Finance, Ways, and Means Committee 3/9/2026 Passed. Result: pass.Lower
- Mar 9Assigned to s/c Finance, Ways, and Means SubcommitteeMinor
- Mar 4Placed on cal. Government Operations Committee for 3/9/2026
- Feb 25Ref. to Government Operations Committee for Review - Finance, Ways & Means CommitteeMinor
- Feb 5P2C, caption bill, held on desk - pending amdt.
- Feb 4Intro., P1C.Minor
- Feb 2Filed for introductionIntroduced
Taxes & Budget