Senate Bill 2151 and House Bill 2156 propose amendments to Tennessee Code Annotated, specifically Section 67-4-2109, concerning tax credits related to community development financial institutions. The bill modifies existing provisions by deleting and substituting language in two subdivisions. In subdivision (k)(1)(B), the annual credit for qualified loans is adjusted to three percent (3%) of the month-end average unpaid principal balance for the life of the loan or fifteen years, whichever comes first. Similarly, subdivision (k)(2)(B) is amended to establish a five percent (5%) annual credit for qualified low-rate loans under the same conditions.

Additionally, the bill introduces a new subdivision (k)(6) that defines "insurance company" and outlines the tax credits available to insurance companies making qualified loans or investments in certified community development financial institutions. This subdivision specifies that the credit cannot exceed the insurance company's tax liability for the year and is not refundable. The act is set to take effect on January 1, 2027, and will apply to tax years and calendar years beginning on or after that date.

Statutes affected:
Amended with HA0619, SA1103 -- 04/22/2026: 67-4-2109(k)(1)(B), 67-4-2109, 67-4-2109(k)(2)(B), 67-4-2109(k)