2026 tax preference review: Equitable Access to Credit Program
July 2026
Geoff Cunningham, research analyst
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Contact information
Legislative auditor's conclusion
The preference appears to support the Legislature's goal: in 2024, it helped fund $1.2 million in business loans in underserved communities. More recent data is unavailable.
Read the full reportKey points
- The Legislature established the Equitable Access to Credit Program in 2022 to encourage business development in underserved communities.
- Businesses that contribute to the program can claim a dollar-for-dollar business and occupation tax credit.
- Fifteen businesses have given $11.8 million (2023-25) and received $11.4 million in tax credit. Most are financial institutions whose contributions help them meet federal requirements.
- The program uses contributions to award grants to eligible lenders. They have issued 34 loans to women-owned businesses, low-income or minority borrowers, or rural businesses.
- Based on the one year of data available, an economic model suggests that the businesses that received loans support up to 140 jobs and $670,000 in tax revenue.
Legislative auditor’s recommendations
State law requires the legislative auditor to recommend legislative action for each tax preference.
The legislative auditor makes one recommendation.
Recommendation #1
The Legislature should continue the preference beyond its July 2027 expiration.
The preference appears to meet the Legislature's objective of encouraging investment in communities historically underserved by credit.
The Legislature provided goals for this tax preference:
- Create or retain jobs.
- Encourage community and economic development within communities that have historically lacked access to capital.
Based on one year of data, the program appears to be meeting these goals.
If this preference were continued without change, beneficiaries would have tax savings like those shown in the savings summary graph. This would reduce state revenues by a corresponding amount.
On or before July 1, 2027.
Responses from the Office of Financial Management (OFM) and the Department of Revenue (DOR) will be included with the proposed final report.
Video summary
Read the full report
Equitable Access to Credit Program (HTML)
Read an overview
Read the agency response
To be included in proposed final report
Legislative mandate