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Straight-ahead summaries built from the official bill text. We keep the source links front and center and leave the decision up to you.

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HB0156 • 2026

Taxes, Business

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, relative to exemption from taxes for child care agencies.

Children Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Clemmons, Campbell
Last action
2025-01-28
Official status
Assigned to s/c Finance, Ways, and Means Subcommittee
Effective date
Not listed

Plain English Breakdown

The official source does not provide details about the enforcement of the tax exemption or specify which child care agencies qualify for the exemption.

Child Care Agency Tax Exemption Act

This bill exempts child care agencies from business taxes and requires the state to annually allocate an amount equal to what was collected in fiscal year 2023-2024 for services provided by child care agencies.

What This Bill Does

  • Exempts child care agencies from paying certain business taxes.
  • Requires the state to distribute an annual amount equal to what was collected in fiscal year 2023-2024 for services provided by child care agencies.

Who It Names or Affects

  • Child care agencies
  • Counties and municipalities

Terms To Know

Business taxes
Taxes that businesses pay based on their income or profits.
Fiscal year
A period of one year used for budgeting and financial reporting by governments and organizations.

Limits and Unknowns

  • The bill does not specify how the tax exemption will be enforced.
  • It is unclear if there are any limits on which child care agencies qualify for this exemption.

Bill History

  1. 2026-01-13 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 2/3/2026

  2. 2026-01-05 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 1/13/2026

  3. 2025-04-14 Tennessee General Assembly

    Action deferred in Senate Finance, Ways & Means Committee to 1st Calendar of 2026

  4. 2025-02-18 Tennessee General Assembly

    Refer to Senate F,W&M Revenue Subcommittee

  5. 2025-02-12 Tennessee General Assembly

    Sponsor(s) Added.

  6. 2025-01-28 Tennessee General Assembly

    Assigned to s/c Finance, Ways, and Means Subcommittee

  7. 2025-01-27 Tennessee General Assembly

    P2C, ref. to Finance, Ways, and Means Committee

  8. 2025-01-16 Tennessee General Assembly

    Intro., P1C.

  9. 2025-01-15 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Finance, Ways & Means Committee

  10. 2025-01-14 Tennessee General Assembly

    Filed for introduction

  11. 2025-01-14 Tennessee General Assembly

    Introduced, Passed on First Consideration

  12. 2025-01-06 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 36
By Campbell

HOUSE BILL 156
By Clemmons

HB0156
000953
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 4, relative to exemption from taxes for
child care agencies.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-708(3)(C), is amended by
adding the following new subdivision:
(xvii) Child care agencies as defined in § 71-3-501.
SECTION 2. Tennessee Code Annotated, Section 67-4-708(3)(C), is amended by
deleting the language "subdivisions (3)(C)(i)-(xvi)" wherever it may appear and substituting
instead "subdivisions (3)(C)(i)-(xvii)".
SECTION 3. Tennessee Code Annotated, Section 67-4-724, is amended by adding the
following new subsection:
(e) Notwithstanding subsections (a) and (b), during the 2024-2025 fiscal year
and subsequent fiscal years, the state must annually allocate and distribute to counties
and municipalities an amount equal to the amount distributed to the counties and
municipalities in the 2023-2024 fiscal year that was derived from taxes collected under
this part for services performed by child care agencies as defined in § 71-3-501.
Notwithstanding § 67-6-103 to the contrary, the distribution required by this subsection
(e) must be made from state sales tax collections prior to distribution under § 67-6-103;
provided, however, that no portion of the revenue derived from the increase in the rate of
sales and use tax from six percent (6%) to seven percent (7%) contained in chapter 856,
§ 4 of the Public Acts of 2002 shall be distributed pursuant to this subsection (e). All

- 2 - 000953

such revenue shall continue to be allocated as provided in chapter 856 of the Public Acts
of 2002.
SECTION 4. This act takes effect upon becoming a law, the public welfare requiring it,
and applies to tax years ending on or after December 31, 2025.