Energy

Plain English Breakdown

Checked against official source text during the last sync.

Clean Energy and Jobs Act

This bill establishes a Clean Energy Workforce Training Fund to support clean energy workforce training projects and provides tax credits for renewable energy businesses and small businesses implementing sustainable practices.

What This Bill Does

• Creates the Clean Energy Workforce Training Fund within the state treasury, which will provide grants for clean energy workforce training programs.
• Defines 'clean energy' as energy from sources that produce significantly lower carbon emissions than traditional fossil fuels, including solar, wind, geothermal, hydropower, and biomass.
• Allows the Department of Environment and Conservation's Office of Energy Programs to accept additional funds through gifts or grants for the Clean Energy Workforce Training Fund.
• Establishes a tax credit of 30% on sales and use taxes for renewable energy businesses that develop, manufacture, install, or maintain clean energy systems.
• Provides a tax credit of 30% on sales and use taxes for small businesses (50 or fewer full-time employees) implementing sustainable practices.

Who It Names or Affects

• The Department of Environment and Conservation's Office of Energy Programs
• Renewable energy businesses
• Small businesses with up to 50 full-time employees

Terms To Know

Clean energy

Energy from sources that produce significantly lower carbon emissions than traditional fossil fuels, such as solar, wind, geothermal, hydropower, and biomass.

Renewable energy business

A company primarily involved in the development, manufacture, installation, or maintenance of goods that generate electricity or heat from renewable sources like sunlight, wind, water, geothermal heat, or biomass.

Limits and Unknowns

• The bill does not specify how much money will be allocated to the Clean Energy Workforce Training Fund.
• Details on how tax credits will be calculated and claimed are left to future rules by the Department of Revenue.

Official Summary Text

This bill enacts
the "Clean Energy and Jobs Act
,
"
as described below.

CLEAN ENERGY WORKFORCE TRAINING FUND
–
GRANTS

Thi
s bill
create
s
in the state treasury the clean energy workforce training fund, to be administered by the department

of environment and conservation's office of energy programs
("
office
")
.

The fund consists of moneys appropriated to the fund by the general
assembly. Funds appropriated to the fund must only be used to provide grants to clean energy workforce training projects, as described in this
bill
.

In addition to appropriations made to the fund,
this bill authorizes
the department
to
accept other fund
s, public or private, by way of gift or grant to the fund. Any such gift or grant must be deposited into the fund to be distributed in accordance with this
bill
.

This bill requires the
office
to
utilize the fund to provide grants to support the developm
ent, implementation, and operation of clean energy workforce training programs.
As used in this provision, "clean energy" means
energy that is derived from a source known to produce significantly lower carbon emissions than traditional fossil fuels and
i
n
cludes energy generated from solar, wind, geothermal, hydropower, and biomass
.
The office
must
develop eligibility criteria by rule, and create an application with which an individual or entity may request funding.

All grant recipients are subject to aud
it by the comptroller of the treasury as to the funds received pursuant to this
bill
.

TAX CREDIT

This bill creates
a tax credit of 30% of the sales and use tax paid with respect to
each of the following
:



A system, method, improvement, structure, device, or appliance primarily used by a renewable energy business to develop, manufacture, install, or maintain a good or system that generates electricity or heat from renewable sources of energy
. As used in this provision, a "
r
enewable energy business"
(i) means
a business entity for which the primary activity or sources of revenue involve the development, manufacture, installation, or maintenance of goods that generate electricity or heat from renewable sources of energy, including sunlight, wind, water, geothermal heat, or biomass and
(ii) i
ncludes solar panel installation companies, wind farm developers, and hydroelectric power plant operators
.



A system, method, improvement, structure, device, or appliance primarily used by a business entity, including its affiliates, that employs
5
0 or fewer full-time employees to implement or improve the business's sustainable practices.
As used in this provision,
"
s
ustainable practices"
(i) m
eans a business practice the primary goal of which is to minimize the environmental impact of the business by reducing waste produced by the business, conserving resources, or reducing the amount of pollution produced by the business; and

(ii) includes practices such as integrating eco-friendly material into the production or manufacturing process of a good, or recycling a material used in the production or manufacturing process of a good, utilizing biodegradable packaging.

This bill requires the
department of revenue
to
promulgate rules to effectuate
such tax credit.

Current Bill Text

SENATE BILL 1246
By Yarbro

HOUSE BILL 951
By Brooks

HB0951
001144
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4,
Chapter 3, Part 5 and Title 67, relative to energy.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. This act is known and may be cited as the "Clean Energy and Jobs Act".
SECTION 2. Tennessee Code Annotated, Title 4, Chapter 3, Part 5, is amended by
adding the following as a new section:
(a) As used in this section:
(1) "Clean energy":
(A) Means energy that is derived from a source known to produce
significantly lower carbon emissions than traditional fossil fuels; and
(B) Includes energy generated from solar, wind, geothermal,
hydropower, and biomass;
(2) "Department" means the department of environment and
conservation;
(3) "Fund" means the clean energy workforce fund; and
(4) "Office" means the department's office of energy programs.
(b)
(1) There is created in the state treasury the clean energy workforce
training fund, which is separate and distinct from the general fund and all other
reserve funds, to be administered by the office.

- 2 - 001144

(2) The fund consists of moneys appropriated to the fund by the general
assembly. Funds appropriated to the fund must only be used to provide grants to
clean energy workforce training projects, as described in this section.
(c) The office shall utilize the fund to provide grants to support the development,
implementation, and operation of clean energy workforce training programs.
(d) The office shall develop eligibility criteria by rule, and shall create an
application with which an individual or entity may request funding.
(e) All grant recipients are subject to audit by the comptroller of the treasury as
to the funds received pursuant to this section.
(f)
(1) In addition to appropriations made to the fund, the department may
accept other funds, public or private, by way of gift or grant to the fund. Any such
gift or grant must be deposited into the fund to be distributed in accordance with
this section.
(2) Moneys in the fund may be invested by the state treasurer in
accordance with § 9-4-602.
(3) Interest accruing on investments and deposits of the fund must be
credited to the fund, do not revert to the general fund, and must be carried
forward into the subsequent fiscal year.
(4) Any balance remaining unexpended at the end of a fiscal year in the
fund does not revert to the general fund and must be carried forward into the
subsequent fiscal year.
SECTION 3. Tennessee Code Annotated, Title 67, Chapter 6, Part 3, is amended by
adding the following as a new section:
(a) As used in this section:

- 3 - 001144

(1) "Renewable energy business":
(A) Means a business entity for which the primary activity or
sources of revenue involve the development, manufacture, installation, or
maintenance of goods that generate electricity or heat from renewable
sources of energy, including sunlight, wind, water, geothermal heat, or
biomass; and
(B) Includes solar panel installation companies, wind farm
developers, and hydroelectric power plant operators;
(2) "Small business" means a business entity, including its affiliates, that
employs fifty (50) or fewer full-time employees; and
(3) "Sustainable practices":
(A) Means a business practice the primary goal of which is to
minimize the environmental impact of the business by reducing waste
produced by the business, conserving resources, or reducing the amount
of pollution produced by the business; and
(B) Includes practices such as integrating eco-friendly material
into the production or manufacturing process of a good, or recycling a
material used in the production or manufacturing process of a good,
utilizing biodegradable packaging.
(b) There is a tax credit of thirty percent (30%) of the sales and use tax paid with
respect to:
(1) A system, method, improvement, structure, device, or appliance
primarily used by a renewable energy business to develop, manufacture, install,
or maintain a good or system that generates electricity or heat from renewable
sources of energy; or

- 4 - 001144

(2) A system, method, improvement, structure, device, or appliance
primarily used by a small business to implement or improve the business's
sustainable practices.
(c) The department of revenue shall promulgate rules to effectuate this section.
The rules must be promulgated in accordance with the Uniform Administrative
Procedures Act, compiled in title 4, chapter 5.
SECTION 4. For purposes of promulgating rules, this act takes effect upon becoming a
law, the public welfare requiring it. For all other purposes, this act takes effect January 1, 2026,
the public welfare requiring it.