House Bill 691 amends Tennessee Code Annotated, Section 67-4-2109, to adjust the tax credits available to financial institutions for loans made to eligible housing entities. Specifically, it modifies the percentage of the month-end average unpaid principal balance that can be claimed as a tax credit. The bill replaces the existing provisions in two subdivisions: it establishes a tax credit of three percent (3%) annually for qualified loans and five percent (5%) annually for qualified low-rate loans, both applicable for the fiscal year life of the loan or up to fifteen years, whichever comes first.

The changes aim to provide clearer guidelines and potentially enhance the financial incentives for institutions that support eligible housing activities. The new provisions will take effect on July 1, 2025, ensuring that financial institutions can plan accordingly for the implementation of these tax credits.

Statutes affected:
Introduced: 67-4-2109(h)(1)(B), 67-4-2109, 67-4-2109(h)(2)(B)