Individual income and corporate franchise taxes; income subtraction provided for certain commercial loans issued by financial institutions.

HF 916 allows financial institutions to subtract income from certain commercial loans when calculating Minnesota individual and corporate taxes. It applies specifically to loans of $5 million or less provided to Minnesota residents or businesses for business or agricultural use. The bill modifies tax code sections to create this subtraction for qualifying loans issued by financial institutions, including S corporations. This policy change directly affects Minnesota-based borrowers seeking business or agricultural loans and the financial institutions issuing them, effective for tax years starting after December 31, 2024.