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SB0885 • 2026

Taxes

AN ACT to amend Tennessee Code Annotated, Title 67, relative to energy.

Energy Taxes
Enacted

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

Sponsor
Reeves, Boyd
Last action
2025-05-27
Official status
Comp. became Pub. Ch. 517
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the impact on local revenues from nuclear energy production facilities or updates to pollution control tax credits.

Tennessee Energy Tax Changes

This law removes sales taxes on uranium enrichment activities and machinery used for enriching uranium under certain conditions.

What This Bill Does

  • Removes the sales tax on uranium enrichment done on a cost-plus or toll basis.
  • Exempts industrial machinery used primarily for enriching, deconverting, or converting uranium materials from sales taxes under certain conditions.

Who It Names or Affects

  • Companies involved in uranium enrichment and related industrial machinery

Terms To Know

Cost-plus basis
A pricing method where a company is paid for the cost of materials and labor plus an additional profit margin.

Limits and Unknowns

  • The exact amount of state revenue lost due to tax exemptions cannot be determined with certainty.

Amendments

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

Amendment 1-0 to SB0885

Plain English: The amendment changes Tennessee tax laws by removing certain provisions and adding new ones related to machinery and equipment used in uranium enrichment, deconversion, and conversion processes.

  • Removes a specific section of the existing law regarding energy taxes.
  • Adds new sections defining machinery and equipment necessary for enriching, deconverting, or converting uranium materials under various contracts.
  • The amendment text is highly technical and may be difficult to understand without additional context about Tennessee's tax laws and the specific processes mentioned.

Bill History

  1. 2025-05-27 Tennessee General Assembly

    Comp. became Pub. Ch. 517

  2. 2025-05-27 Tennessee General Assembly

    Effective date(s) 07/01/2025

  3. 2025-05-27 Tennessee General Assembly

    Pub. Ch. 517

  4. 2025-05-21 Tennessee General Assembly

    Signed by Governor.

  5. 2025-05-09 Tennessee General Assembly

    Transmitted to Governor for his action.

  6. 2025-05-08 Tennessee General Assembly

    Signed by Senate Speaker

  7. 2025-04-30 Tennessee General Assembly

    Signed by H. Speaker

  8. 2025-04-23 Tennessee General Assembly

    Enrolled; ready for sig. of H. Speaker.

  9. 2025-04-21 Tennessee General Assembly

    H. concurred in S. am. no. 1 Ayes 70, Nays 24 PNV 1 HB1133

  10. 2025-04-17 Tennessee General Assembly

    H. Placed on Message Calendar 4/21/2025

  11. 2025-04-17 Tennessee General Assembly

    Senate refused to recede from amendment

  12. 2025-04-16 Tennessee General Assembly

    Placed on Senate Message Calendar for 4/17/2025

  13. 2025-04-16 Tennessee General Assembly

    Senate Reset on calendar for 4/17/2025

  14. 2025-04-15 Tennessee General Assembly

    Placed on Senate Message Calendar for 4/16/2025

  15. 2025-04-10 Tennessee General Assembly

    H. nonconcurred in S. am. no. 1 HB1133

  16. 2025-04-07 Tennessee General Assembly

    H. Placed on Message Calendar 4/10/2025

  17. 2025-04-03 Tennessee General Assembly

    Sponsor(s) Added.

  18. 2025-04-03 Tennessee General Assembly

    Companion House Bill substituted

  19. 2025-04-03 Tennessee General Assembly

    Passed Senate as amended, Ayes 30, Nays 0

  20. 2025-04-03 Tennessee General Assembly

    Senate adopted Amendment (Amendment 1 - SA0255)

  21. 2025-04-03 Tennessee General Assembly

    Senate substituted House Bill for companion Senate Bill.

  22. 2025-04-01 Tennessee General Assembly

    Placed on Senate Regular Calendar for 4/3/2025

  23. 2025-03-26 Tennessee General Assembly

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

  24. 2025-03-19 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/26/2025

  25. 2025-03-19 Tennessee General Assembly

    Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/26/2025

  26. 2025-03-17 Tennessee General Assembly

    Received from House, Passed on First Consideration

  27. 2025-03-13 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/19/2025

  28. 2025-03-13 Tennessee General Assembly

    Engrossed; ready for transmission to Sen.

  29. 2025-03-13 Tennessee General Assembly

    Passed H., Ayes 87, Nays 2, PNV 1

  30. 2025-03-13 Tennessee General Assembly

    Sponsor(s) Added.

  31. 2025-03-12 Tennessee General Assembly

    Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/19/2025

  32. 2025-03-10 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/13/2025

  33. 2025-03-10 Tennessee General Assembly

    Sponsor(s) Added.

  34. 2025-03-10 Tennessee General Assembly

    Objected to on Consent Calendar.

  35. 2025-03-06 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/12/2025

  36. 2025-03-06 Tennessee General Assembly

    H. Placed on Consent Calendar for 3/10/2025

  37. 2025-03-05 Tennessee General Assembly

    Action deferred in Senate Energy, Ag., and Nat. Resources Committee to 3/12/2025

  38. 2025-03-05 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/6/2025

  39. 2025-03-04 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  40. 2025-03-04 Tennessee General Assembly

    Sponsor(s) Added.

  41. 2025-02-26 Tennessee General Assembly

    Placed on Senate Energy, Ag., and Nat. Resources Committee calendar for 3/5/2025

  42. 2025-02-26 Tennessee General Assembly

    Placed on cal. Finance, Ways, and Means Committee for 3/4/2025

  43. 2025-02-26 Tennessee General Assembly

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

  44. 2025-02-25 Tennessee General Assembly

    Sponsor(s) Added.

  45. 2025-02-19 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 2/26/2025

  46. 2025-02-19 Tennessee General Assembly

    Meeting Canceled

  47. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee

  48. 2025-02-12 Tennessee General Assembly

    Placed on s/c cal Finance, Ways, and Means Subcommittee for 2/19/2025

  49. 2025-02-12 Tennessee General Assembly

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

  50. 2025-02-12 Tennessee General Assembly

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

  51. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  52. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  53. 2025-02-05 Tennessee General Assembly

    Filed for introduction

  54. 2025-02-05 Tennessee General Assembly

    Filed for introduction

Official Summary Text

ON APRIL 3,
2025, THE SENATE SUBSTITUTED HOUSE BILL 1133 FOR SENATE BILL 885, ADOPTED AMENDMENT #1, AND PASSED HOUSE BILL 885, AS AMENDED.

AMENDMENT #1 adds to this bill by removing the sales tax on:

(1) The enriching of uranium materials, compounds, or products
that is performed on a cost-plus basis or on a toll enrichment fee basis; and

(2) Industrial machinery that is necessary to, and primarily for enriching, deconverting, or converting uranium materials, compounds, or products under certain circumstances as
described in the full text of this amendment.

ON APRIL 10, 2025, THE HOUSE NONCONCURRED IN SENATE AMENDMENT #1.

ON APRIL 17, 2025, THE SENATE REFUSED TO RECEDE FROM ITS ADOPTION OF SENATE AMENDMENT #1.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 1133
By Boyd

SENATE BILL 885
By Reeves

SB0885
002366
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 67,
relative to energy.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 67-4-2004(9)(A), is amended by
deleting "and wind sources" and substituting "wind sources, and nuclear energy production
facilities".
SECTION 2. This act takes effect July 1, 2025, the public welfare requiring it.