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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
Active

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

Sponsor
Littleton, Roberts
Last action
2026-04-08
Official status
Placed on cal. Finance, Ways, and Means Committee for 4/14/2026
Effective date
Not listed

Plain English Breakdown

The bill does not mandate that mergers must occur to achieve corporate goals, only that they can initiate a merger process under certain conditions.

Industrial Development Corporation Mergers

This bill allows industrial development corporations in Tennessee to initiate mergers with other corporations under specific conditions.

What This Bill Does

  • Changes rules for industrial development corporations so they can start a merger process if necessary or convenient.
  • Allows these corporations to follow the same steps as public benefit corporations when merging.

Who It Names or Affects

  • Industrial development corporations in Tennessee
  • Other corporations involved in potential mergers with industrial development corporations

Terms To Know

industrial development corporation
A type of business organization that helps promote economic growth and job creation.
public benefit corporation
A company formed to achieve a specific public good, not just profit.

Limits and Unknowns

  • The bill does not specify what happens if the merger is not approved.
  • It's unclear how many industrial development corporations will use this new rule.

Amendments

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

Amendment 1-0 to HB1878

Plain English: The amendment changes how industrial development corporations can negotiate and receive payments in lieu of taxes for tax-credit housing projects without needing specific approval from municipalities.

  • Allows an industrial development corporation to negotiate and receive payments in lieu of taxes for tax-credit housing projects directly with lessees, provided certain conditions are met.
  • Requires the chief executive officer of the municipality or affected taxing jurisdictions to support such agreements if the payments are less than what would have been paid previously.
  • The amendment text is complex and technical, making it difficult to fully explain all nuances without additional context.
Amendment 1-0 to SB2646

Plain English: The amendment changes how industrial development corporations can negotiate and receive payments in lieu of taxes for tax-credit housing projects without needing approval from the municipality.

  • Removes the requirement that municipalities must approve agreements regarding payments in lieu of taxes for tax-credit housing projects, if certain conditions are met.
  • Specifies that a corporation may negotiate such payments directly with lessees if supported by the chief executive officer of the municipality or affected taxing jurisdictions.
  • The amendment text is complex and technical, making it difficult to fully explain all implications without additional context.
Amendment 2-0 to SB2646

Plain English: The amendment changes how industrial development corporations can negotiate and receive payments in lieu of taxes for tax-credit housing projects without needing specific approval from municipalities.

  • Allows an industrial development corporation to negotiate and receive payments in lieu of taxes for tax-credit housing projects directly with lessees, provided certain conditions are met.
  • Requires the chief executive officer of the municipality or affected taxing jurisdictions to support such agreements if the payments are less than what would have been paid previously.
  • The amendment text is complex and technical, making it difficult to fully explain all nuances without additional context.

Bill History

  1. 2026-04-08 Tennessee General Assembly

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

  2. 2026-04-08 Tennessee General Assembly

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

  3. 2026-04-08 Tennessee General Assembly

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

  4. 2026-04-08 Tennessee General Assembly

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

  5. 2026-04-08 Tennessee General Assembly

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

  6. 2026-04-08 Tennessee General Assembly

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

  7. 2026-04-07 Tennessee General Assembly

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

  8. 2026-04-07 Tennessee General Assembly

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

  9. 2026-04-01 Tennessee General Assembly

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

  10. 2026-04-01 Tennessee General Assembly

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

  11. 2026-04-01 Tennessee General Assembly

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

  12. 2026-03-25 Tennessee General Assembly

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

  13. 2026-03-25 Tennessee General Assembly

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

  14. 2026-03-18 Tennessee General Assembly

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

  15. 2026-03-18 Tennessee General Assembly

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

  16. 2026-03-12 Tennessee General Assembly

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

  17. 2026-03-11 Tennessee General Assembly

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

  18. 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

  19. 2026-03-04 Tennessee General Assembly

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

  20. 2026-03-04 Tennessee General Assembly

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

  21. 2026-03-04 Tennessee General Assembly

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

  22. 2026-03-03 Tennessee General Assembly

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

  23. 2026-02-25 Tennessee General Assembly

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

  24. 2026-02-24 Tennessee General Assembly

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

  25. 2026-02-18 Tennessee General Assembly

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

  26. 2026-02-11 Tennessee General Assembly

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

  27. 2026-02-11 Tennessee General Assembly

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

  28. 2026-02-05 Tennessee General Assembly

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

  29. 2026-02-04 Tennessee General Assembly

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

  30. 2026-02-04 Tennessee General Assembly

    Sponsor(s) withdrawn.

  31. 2026-02-04 Tennessee General Assembly

    Sponsor change.

  32. 2026-02-02 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  33. 2026-02-02 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  34. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  35. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  36. 2026-01-22 Tennessee General Assembly

    Intro., P1C.

  37. 2026-01-21 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

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.