Tennessee Governor Signs Law Increasing Tax Credits for Financial Institutions Providing Loans to Housing Entities

The Tennessee Governor signed a law granting financial institutions a credit against the sum total of franchise and excise taxes paid, in an amount equal to 5 percent annually of the unpaid principal balance of a qualified low-rate loan made to an eligible housing entity for any eligible activity as of December 31 of each year for the life of the loan or 15 years, whichever is earlier. The law takes effect Jan. 1, 2026. [H.B. 0691, enacted 05/21/25]

This story was produced by Bloomberg Tax Automation, and edited by Bloomberg Tax staff.