House Bill 691 amends Tennessee Code Annotated, Section 67-4-2109, to adjust the tax credit percentages for financial institutions providing loans to eligible housing entities. Specifically, it replaces the existing language in subsection (h)(1)(B) to establish a tax credit of three percent (3%) annually based on the month-end average unpaid principal balance of qualified loans for eligible activities, applicable for the life of the loan or up to fifteen years, whichever comes first.

Additionally, the bill modifies subsection (h)(2)(B) to set the tax credit for qualified low-rate loans at five percent (5%) annually, also calculated on the month-end average unpaid principal balance for the same duration. These changes aim to incentivize financial institutions to support housing initiatives by providing clearer and potentially more beneficial tax credit structures. The act is set to take effect on July 1, 2025.

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