How are the tax credits calculated? Are they dollar for dollar credits?
Tax credits for qualified loans or qualified long-term investments are equal to 5% of the loan or investment amount. For example, a $200,000 qualified loan made to an eligible housing entity for an eligible activity would generate a credit of $10,000. Tax credits for qualified low-rate loans, grants or contributions are equal to 10% of the loan, grant or contribution amount. For example, a $200,000 qualified low-rate loan, grant or contribution made to an eligible housing entity for an eligible activity would generate a credit of $20,000. Community investment tax credit may be applied directly to a financial institutions Tennessee franchise and excise tax liability on a dollar for dollar basis.
