Minnesota Legislature
HF 5405
as introduced - 93rd Legislature (2023 - 2024) Posted on 04/24/2024 01:57pm
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A bill for an act
relating to taxation; individual income and corporate franchise; providing a
subtraction from income for certain commercial loans issued by financial
institutions; amending Minnesota Statutes 2022, sections 290.0132, by adding a
subdivision; 290.0134, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2022, section 290.0132, is amended by adding a subdivision
to read:
Subd. 36.
Commercial loans for business or agricultural purposes.
For a financial
institution that is an S corporation, the amount of income from a commercial loan is a
subtraction if:
(1) the value of the loan is $5,000,000 or less; and
(2) the loan was provided to a person residing or located in this state and used primarily
for a business or agricultural purpose.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2023.
Sec. 2.
Minnesota Statutes 2022, section 290.0134, is amended by adding a subdivision
to read:
Subd. 21.
Commercial loans for business or agricultural purposes.
For a financial
institution, the amount of income from a commercial loan is a subtraction if:
(1) the value of the loan is $5,000,000 or less; and
(2) the loan was provided to a person residing or located in this state and used primarily
for a business or agricultural purpose.
EFFECTIVE DATE.
This section is effective for taxable years beginning after December
31, 2023.