The legislative bill, H.F. No., authored by Baker and referred to the Committee on Taxes, aims to amend taxation laws related to individual income and corporate franchise. Specifically, it proposes a change to Minnesota Statutes by adding subdivisions to sections 290.0132 and 290.0134. The bill introduces a tax subtraction for certain commercial loans issued by financial institutions.

Key changes proposed in the bill include: - Financial institutions that are S corporations can subtract the income derived from commercial loans from their taxable income. - To qualify for this subtraction, the loan must be valued at $5,000,000 or less. - Additionally, the loan must be provided to a person who resides in or is located in Minnesota and used primarily for business or agricultural purposes.

This bill is designed to incentivize financial institutions to offer more commercial loans to small businesses and agricultural operations by providing a tax benefit, thereby potentially boosting economic activity within the state.