Subtraction from income provision for certain commercial loans issued by financial institutions

SF 3364 creates a tax subtraction for financial institutions in Minnesota that provide qualifying commercial loans. It allows S corporations (via § 290.0132) and all financial institutions (via § 290.0134) to subtract income from loans meeting three criteria: (1) $5 million or less in value, (2) provided to a Minnesota resident or business, and (3) used primarily for business or agricultural purposes. This change reduces taxable income for participating financial institutions, effective for tax years starting after December 31, 2024. The bill directly affects financial institutions issuing such loans within Minnesota, not the borrowers.