WeVote
Log In

Bill

Bill

S 3614

Exempts minority depository institutions from the corporate franchise tax for a period of ten years

2025 Regular Session Introduced by George Borrello

Exempts qualifying minority depository institutions from the corporate franchise tax for 10 years, boosting capital and lending in minority communities.

REFERRED TO BUDGET AND REVENUE
0
WeVote Research Nonpartisan
Bill Summary · S 3614

Summary of Bill S 3614

Overview

S 3614 is a bill introduced on January 29, 2025, titled “Exempts minority depository institutions from the corporate franchise tax for a period of ten years.” The measure is currently REFERRED TO BUDGET AND REVENUE, indicating it will be reviewed for fiscal impact as part of the budget process. A related prior-session bill is S 9333.

Purpose and Intent

  • The central aim is to provide a temporary tax incentive to minority depository institutions (MDIs) by exempting them from the state corporate franchise tax for a ten-year period.
  • The policy intention appears to be to support MDIs—typically banks or other FDIC-insured depository institutions owned or controlled by minority groups—by reducing their tax burden, potentially enabling greater capital retention and lending to minority communities.

Key Provisions

  • Exemption: MDIs would be exempt from the state corporate franchise tax for ten years.
  • Tax Status: Applies specifically to the corporate franchise tax obligations of MDIs (the bill text would define the scope, including which entities qualify as MDIs).
  • Duration: The exemption lasts a ten-year period; the bill does not specify the exact start date in the provided information.
  • Administration: As the measure is referred to Budget and Revenue, fiscal effects and administration will likely be analyzed by the committee as part of the budget process.

Who Would Be Affected

  • Primary Beneficiaries: Minority depository institutions operating within the state that qualify under the bill’s definitions.
  • Indirect Effects: Other financial institutions and the broader credit market could experience changes in competitive dynamics or community investment activities due to altered tax positions of MDIs.
  • Tax Revenue: State corporate franchise tax receipts would be reduced by the amount attributable to the exempt MDIs during the ten-year window.

Fiscal and Economic Implications

  • Revenue Impact: The bill would reduce state corporate franchise tax revenue by the amount MDIs would have paid during the exemption period. The magnitude depends on the number of qualifying MDIs, their tax base, and the applicable tax rate.
  • Policy Considerations: The committee (Budget and Revenue) will assess cost, potential benefits to minority communities, and any administrative considerations or sunset/renewal provisions.

Procedural and Timeline Details

  • Introduced: January 29, 2025.
  • Status: REFERRED TO BUDGET AND REVENUE.
  • Next Steps: The Budget and Revenue committee will evaluate the bill’s fiscal impact, define MDI eligibility, and determine any amendment or scheduling for debate and possible passage.
  • Related Legislation: S 9333 (prior-session) indicates similar or predecessor language in a prior session.

Notes

  • The summary reflects the information available; the full bill text would provide precise definitions of “minority depository institutions,” eligibility criteria, effective dates, and any transition rules or sunset conditions.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.