MS HB1272

Creates a 5% tax credit for financial institutions making qualified loans (at least 2% below prime rate) or qualified long-term investments (equity investments over 5 years) to Treasury-certified Community Development Financial Institutions (CDFIs)

Alternatively allows a 3% annual tax credit on the unpaid principal balance of qualified loans to CDFIs, available each December 31 for up to 15 years

Provides a higher 10% tax credit for grants, contributions, or qualified low-rate loans (at least 4% below prime rate) made to certified CDFIs

Alternatively allows a 5% annual tax credit on unpaid principal balance of qualified low-rate loans to CDFIs for up to 15 years

Tax credits apply against both income tax and corporation franchise tax, limited to total tax liability per year, with unused credits carrying forward for 15 consecutive years; effective January 1, 2025