Income tax and corporation franchise tax; authorize a credit for financial institutions making certain loans or investments.

HB 1272 creates tax credits for Mississippi financial institutions (like banks and credit unions) that make qualifying loans or investments to community development financial institutions (CDFIs) certified by the U.S. Treasury. Financial institutions can claim credits equal to 5% of standard loans (at least 2% below prime rate) or 10% of grants/contributions and low-rate loans (at least 4% below prime rate) made to certified CDFIs. These credits reduce income tax or franchise tax liability, with unused credits carryable forward for up to 15 years. The bill directly affects financial institutions making these specific CDFI investments.