HB 2156

ON APRIL 22, 2026, THE HOUSE ADOPTED AMENDMENT #1 AND PASSED HOUSE BILL 2156, AS AMENDED. AMENDMENT #1 rewrites the bill to, instead, make the following changes to present law for any financial institution that may credit against the sum total of the taxes imposed by the Franchise Tax law and by the Excise Tax law:  Three percent annually from the unpaid principal balance of a qualified loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund as of December 31 of each year for the life of the loan or 15 years, whichever is earlier, to the month-end average unpaid principal balance of a qualified loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund for the financial institution's fiscal year for the life of the loan or 15 years, whichever is earlier.  Five percent annually from the unpaid principal balance of a qualified low-rate loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund as of December 31 of each year for the life of the loan or 15 years, whichever is earlier, to the month-end average unpaid principal balance of a qualified low-rate loan made to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund for the financial institution's fiscal year for the life of the loan or 15 years, whichever is earlier. This amendment also provides that an insurance company who makes a qualified loan or qualified long-term investment, or that makes a grant, contribution, or qualified low-rate loan to a community development financial institution that is certified by the United States department of the treasury's community development financial institutions fund, is authorized a credit against the tax imposed by present law. The carry forward and limitation provisions in present law that apply to the credit are permitted, provided, that no credit allowed may exceed the insurance company's liability for the calendar year for which the credit is claimed, and no amount of credi t is refundable. An authorized credit may be used in connection with both final payments and prepayments of the tax imposed by present law. An insurance company claiming a credit is not required to pay any additional retaliatory tax levied solely as a result of claiming the credit. For purposes of applying present law, any reference to a taxpayer's tax year or fiscal year, or to the taxpaye r's liability for taxes imposed are deemed to mean, respectively, the calendar year for which the tax imposed is reported and the insurance company's liability for the tax imposed. This amendment provides that this bill takes effect January 1, 2027, and applies to tax years and calendar years beginning on or after that date. ON APRIL 22, 2026, THE SENATE SUBSTITUTED HOUSE BILL 2156 FOR SENATE BILL 2151, ADOPTED AMENDMENT #1, AND PASSED HOUSE BILL 2156, AS AMENDED. AMENDMENT #1 removes that a n insurance company that makes a qualified loan or qualified long-term investment, or that makes a grant, contribution, or qualified low-rate loan, to a community development financial institution that is certified by the United States department of the t reasury's community development financial institutions fund, is allowed a credit against the tax imposed by present law . This amendment also removes that f or purposes of applying present law , any reference to a taxpayer's tax year or fiscal year, or to the taxpayer's liability for taxes imposed by this part, are deemed to mean, respectively, the calendar year for which the tax imposed is reported and the insurance company's liability for the tax imposed by present law . This amendment revises the effective date's application by only applying it to tax years, not calendar years, beginning on or after January 1, 2027.