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HB0424 • 2026

Taxes

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 20 and Title 67, Chapter 4, Part 21, relative to credits against franchise and excise tax liability.

Taxes
Active

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

Sponsor
Baum, Reeves
Last action
2025-04-09
Official status
Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025
Effective date
Not listed

Plain English Breakdown

The bill does not provide details on what actions will be taken after the report is submitted.

Tennessee Tax Credit Study Act

This bill urges Tennessee's Department of Revenue to study how making all franchise and excise tax credits transferable might affect the economy.

What This Bill Does

  • Urges the Department of Revenue to look at what would happen if tax credits could be given to anyone, not just the company that earned them.
  • Requires the department to finish this study by January 1, 2026, if it is conducted.
  • Asks the department to share its findings with certain committees in the Tennessee State Legislature.

Who It Names or Affects

  • The Department of Revenue
  • Tax-related committees in the Tennessee State Legislature

Terms To Know

franchise and excise tax credits
Money that businesses can save on taxes because they did something special, like investing in certain projects.
transferable
Able to be given or moved from one person or company to another.

Limits and Unknowns

  • The bill does not specify what will happen after the study is completed.
  • It's unclear whether the department will actually conduct the requested study.

Bill History

  1. 2025-04-21 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 1/13/2026

  2. 2025-04-17 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2025

  3. 2025-04-14 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/15/2025

  4. 2025-04-14 Tennessee General Assembly

    Rule #83(8) Suspended, to be heard in Senate Finance, Ways & Means Committee on 4/15/2025

  5. 2025-04-09 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025

  6. 2025-03-18 Tennessee General Assembly

    Refer to Senate Finance, Ways & Means Committee w/ negative recommendation, as amended

  7. 2025-03-11 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 3/18/2025

  8. 2025-03-11 Tennessee General Assembly

    Action deferred in Senate FW&M Revenue Subcommittee to 3/18/2025

  9. 2025-03-05 Tennessee General Assembly

    Placed behind the budget

  10. 2025-03-04 Tennessee General Assembly

    Placed on Senate FW&M Revenue Subcommittee calendar for 3/11/2025

  11. 2025-02-26 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 3/5/2025

  12. 2025-02-18 Tennessee General Assembly

    Refer to Senate F,W&M Revenue Subcommittee

  13. 2025-02-12 Tennessee General Assembly

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

  14. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  15. 2025-02-05 Tennessee General Assembly

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

  16. 2025-02-05 Tennessee General Assembly

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

  17. 2025-02-03 Tennessee General Assembly

    Intro., P1C.

  18. 2025-01-28 Tennessee General Assembly

    Filed for introduction

  19. 2025-01-28 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
SENATE BILL 430
By Reeves

HOUSE BILL 424
By Baum

HB0424
001723
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
Chapter 4, Part 20 and Title 67, Chapter 4, Part
21, relative to credits against franchise and excise
tax liability.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. The department of revenue is urged to study the potential economic
impact of making all franchise and excise tax credits transferable to any person or entity other
than the entity to whom or to which the credits are initially made available pursuant to the
statute creating the credit. If such study is conducted, on or before January 1, 2026, then the
department shall report its findings and recommendations to the finance, ways and means
committee of the senate and the committee in the house of representatives having jurisdiction
over tax-related matters.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.