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HB1878 • 2026

Industrial Development

AN ACT to amend Tennessee Code Annotated, Title 7 and Title 48, relative to industrial development corporations.

Housing Taxes
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Littleton, Roberts
Last action
2026-05-27
Official status
Comp. became Pub. Ch. 987
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Industrial Development

ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 2646, AS AMENDED.

What This Bill Does

  • ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 2646, AS AMENDED.
  • AMENDMENT #2 authorizes an industrial development corporation ("corporation") to negotiate and receive from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project, unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes be approved by the municipality, if the payments are payable to all applicable taxing jurisdictions and meet other criteria and either of the following requirements a re met:  The payments are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project become a tax credit housing project and the chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.
  •  The payments are less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of each taxing jurisdiction has executed a letter supporting the project that is filed with the corporation.
  • Present law authorizes a corporation to negotiate and receive payments in lieu of taxes with respect to a tax-credit housing project if the payments in lieu of taxes are payable to all applicable taxing jurisdiction in which the project is located and ar e not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of the municipality has executed a letter supporting th e project that is filed with the corporation.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB1878

Plain English: House State & Local Government 1 Amendment No.

  • House State & Local Government 1 Amendment No.
  • 1 to HB1878 Crawford Signature of Sponsor AMEND Senate Bill No.
  • 2646 House Bill No.
  • 1878* HA1085 016660 - 1 - by deleting SECTION 2 and substituting: SECTION 2.
Amendment 1-0 to SB2646

Plain English: Senate Commerce and Labor 1 Amendment No.

  • Senate Commerce and Labor 1 Amendment No.
  • 1 to SB2646 Bailey Signature of Sponsor AMEND Senate Bill No.
  • 2646 House Bill No.
  • 1878* SA0662 014670 - 1 - by deleting SECTION 2 and substituting: SECTION 2.
Amendment 2-0 to SB2646

Plain English: Senate Finance, Ways, and Means 1 Amendment No.

  • Senate Finance, Ways, and Means 1 Amendment No.
  • 2 to SB2646 Watson Signature of Sponsor AMEND Senate Bill No.
  • 2646 House Bill No.
  • 1878* SA0992 016660 - 1 - by deleting SECTION 2 and substituting: SECTION 2.

Bill History

  1. 2026-05-27 Tennessee General Assembly

    Comp. became Pub. Ch. 987

  2. 2026-05-27 Tennessee General Assembly

    Effective date(s) 05/19/2026

  3. 2026-05-27 Tennessee General Assembly

    Pub. Ch. 987

  4. 2026-05-19 Tennessee General Assembly

    Signed by Governor.

  5. 2026-05-11 Tennessee General Assembly

    Transmitted to Governor for action.

  6. 2026-05-07 Tennessee General Assembly

    Signed by H. Speaker

  7. 2026-04-30 Tennessee General Assembly

    Signed by Senate Speaker

  8. 2026-04-29 Tennessee General Assembly

    Enrolled and ready for signatures

  9. 2026-04-21 Tennessee General Assembly

    Comp. SB subst.

  10. 2026-04-21 Tennessee General Assembly

    Passed H., Ayes 85, Nays 0, PNV 3

  11. 2026-04-21 Tennessee General Assembly

    Am. withdrawn. (Amendment 1 - HA1085)

  12. 2026-04-21 Tennessee General Assembly

    Subst. for comp. HB.

  13. 2026-04-21 Tennessee General Assembly

    Engrossed; ready for transmission to House

  14. 2026-04-21 Tennessee General Assembly

    Passed Senate as amended, Ayes 32, Nays 0

  15. 2026-04-21 Tennessee General Assembly

    Amendment withdrawn. (Amendment 1 - SA0662)

  16. 2026-04-21 Tennessee General Assembly

    Senate adopted Amendment (Amendment 2 - SA0992)

  17. 2026-04-17 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/21/2026

  18. 2026-04-17 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/21/2026

  19. 2026-04-14 Tennessee General Assembly

    H. Placed on Regular Calendar for 4/16/2026

  20. 2026-04-14 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 4/14/2026

  21. 2026-04-14 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  22. 2026-04-08 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 4/14/2026

  23. 2026-04-08 Tennessee General Assembly

    Rec. for pass by s/c ref. to Finance, Ways, and Means Committee

  24. 2026-04-08 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/8/2026

  25. 2026-04-08 Tennessee General Assembly

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

  26. 2026-04-08 Tennessee General Assembly

    Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

  27. 2026-04-08 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 1 PNV 0

  28. 2026-04-07 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2026

  29. 2026-04-07 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 4/8/2026

  30. 2026-04-01 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 4/8/2026

  31. 2026-04-01 Tennessee General Assembly

    Action def. in State & Local Government Committee to 4/8/2026

  32. 2026-04-01 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/7/2026

  33. 2026-03-25 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/31/2026

  34. 2026-03-25 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/31/2026

  35. 2026-03-18 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/24/2026

  36. 2026-03-18 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/24/2026

  37. 2026-03-12 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/18/2026

  38. 2026-03-11 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/18/2026

  39. 2026-03-10 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 9, Nays 0 PNV 0

  40. 2026-03-04 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/11/2026

  41. 2026-03-04 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/11/2026

  42. 2026-03-04 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/10/2026

  43. 2026-03-03 Tennessee General Assembly

    Action deferred in Senate Commerce and Labor Committee to 3/10/2026

  44. 2026-02-25 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/4/2026

  45. 2026-02-24 Tennessee General Assembly

    Placed on Senate Commerce and Labor Committee calendar for 3/3/2026

  46. 2026-02-18 Tennessee General Assembly

    Action def. in State & Local Government Committee to 3/4/2026

  47. 2026-02-11 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 2/18/2026

  48. 2026-02-11 Tennessee General Assembly

    Rec. for pass by s/c ref. to State & Local Government Committee

  49. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Commerce and Labor Committee

  50. 2026-02-04 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 2/11/2026

  51. 2026-02-04 Tennessee General Assembly

    Sponsor(s) withdrawn.

  52. 2026-02-04 Tennessee General Assembly

    Sponsor change.

  53. 2026-02-02 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  54. 2026-02-02 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  55. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  56. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  57. 2026-01-22 Tennessee General Assembly

    Intro., P1C.

  58. 2026-01-21 Tennessee General Assembly

    Filed for introduction

Official Summary Text

ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 2646, AS AMENDED.

AMENDMENT #2 authorizes an industrial development corporation ("corporation") to negotiate and receive from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project, unless the municipality adopts an ordinance
or resolution requiring that any agreement with respect to the payments in lieu of taxes be approved by the municipality, if the payments are payable to all applicable taxing jurisdictions and meet other criteria and either of the following requirements a
re
met:



The payments are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project become a tax credit housing project and the chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.


The payments are less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of each taxing jurisdiction has executed a letter supporting the project that is filed with the corporation.

Present law authorizes a corporation to negotiate and receive payments in lieu of taxes with respect to a tax-credit housing project if the payments in lieu of taxes are payable to all applicable taxing jurisdiction in which the project is located and ar
e not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of the municipality has executed a letter supporting th
e
project that is filed with the corporation.

Present law grants a corporation the authority to negotiate, accept, or waive from any of the corporation's or lessees payments in lieu of taxes only upon receipt of a formal delegation of such authority from the municipality or municipalities that forme
d the corporation. Any such authorization must be granted only upon a finding by the municipality or municipalities that the payments or waiver of the payments are deemed to be in furtherance of the corporation's public purposes. The legislative body of
t
he municipality or municipalities making the delegation may require the corporation to submit any agreement for approval.

This amendment also requires a corporation to give written notice of any agreement that would result in payments in lieu of taxes being made to any taxing jurisdiction that are less than the taxes that otherwise would be payable to such jurisdiction. Af
ter receiving such a notice, the chief executive officer may either notify the corporation that the agreement must be submitted to the legislative body of that taxing jurisdiction for approval or notify the corporation that the chief executive officer doe
s
not object to the proposed agreement. If the chief executive officer has not responded within 10 days, then the corporation may proceed into the proposed agreement.

Current Bill Text

Read the full stored bill text 
SENATE BILL 2646
By Roberts

HOUSE BILL 1878
By Littleton
HB1878
011548
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 7 and
Title 48, relative to industrial development
corporations.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 7-53-103, is amended by designating
the existing section as subsection (b) and adding the following new subsection (a):
(a) If necessary or convenient to carry out the purposes and provisions of this
chapter, the board of directors of the corporation may initiate a merger with another
corporation in the manner provided for public benefit corporations pursuant to title 48,
chapter 61.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.