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SB1323 • 2026

Tennessee Housing Development Agency

AN ACT to amend Tennessee Code Annotated, Section 13-23-134 and Chapter 971 of the Public Acts of 2024, relative to tax credits.

Housing Taxes
Active

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

Sponsor
Johnson, Lamberth
Last action
2025-04-01
Official status
Assigned to General Subcommittee of Senate Finance, Ways, and Means Committee
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Tennessee Housing Development Agency Tax Credit Changes

This bill removes certain requirements for Tennessee rural and workforce housing tax credits.

What This Bill Does

  • Removes the requirement that Tennessee rural and workforce housing tax credits must be authorized by a joint resolution of the general assembly.
  • Amends Section 13-23-134 of the Tennessee Code Annotated to remove subsection (f).
  • Modifies Chapter 971 of the Public Acts of 2024 by removing part of its second sentence.

Who It Names or Affects

  • The Tennessee Housing Development Agency.
  • Taxpayers who receive tax credits for rural and workforce housing projects.

Terms To Know

Tennessee Code Annotated
A collection of laws in the state of Tennessee organized by subject matter.
Joint resolution
A formal statement or declaration adopted by both houses of a legislature, often used for special purposes like authorizing tax credits.

Limits and Unknowns

  • The exact amount of future tax credits cannot be predicted due to multiple unknown variables.
  • It is unclear how the changes will affect the allocation and distribution of housing tax credits.

Amendments

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

Amendment 1-0 to SB1323

Plain English: The amendment removes subsection (f) from Section 2 of Chapter 971 of the Public Acts of 2024 in Tennessee Code Annotated and changes the effective date for when the act takes effect.

  • Removes subsection (f) from § 13-23-134, which is part of Section 2 of Chapter 971 of the Public Acts of 2024.
  • Changes the effective date so that the act becomes law immediately upon approval.
  • The amendment does not provide details about what was in subsection (f) or how its removal will affect other parts of the bill.

Bill History

  1. 2025-04-01 Tennessee General Assembly

    Assigned to General Subcommittee of Senate Finance, Ways, and Means Committee

  2. 2025-03-25 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 4/1/2025

  3. 2025-03-19 Tennessee General Assembly

    Taken off notice for cal. in State & Local Government Committee

  4. 2025-03-12 Tennessee General Assembly

    Placed on cal. State & Local Government Committee for 3/19/2025

  5. 2025-03-12 Tennessee General Assembly

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

  6. 2025-03-11 Tennessee General Assembly

    Action deferred in Senate Finance, Ways, and Means Committee to 3/25/2025

  7. 2025-03-10 Tennessee General Assembly

    Sponsor(s) Added.

  8. 2025-03-05 Tennessee General Assembly

    Placed on s/c cal Cities & Counties Subcommittee for 3/12/2025

  9. 2025-03-04 Tennessee General Assembly

    Placed on Senate Finance, Ways, and Means Committee calendar for 3/11/2025

  10. 2025-03-04 Tennessee General Assembly

    Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 8, Nays 0 PNV 0

  11. 2025-03-04 Tennessee General Assembly

    Sponsor(s) Added.

  12. 2025-02-27 Tennessee General Assembly

    Placed on Senate State and Local Government Committee calendar for 3/4/2025

  13. 2025-02-27 Tennessee General Assembly

    Rule #83(8) Suspended, to be heard in Senate State & Local Government Committee 3/4/2025

  14. 2025-02-12 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate State and Local Government Committee

  15. 2025-02-12 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  16. 2025-02-12 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  17. 2025-02-10 Tennessee General Assembly

    Introduced, Passed on First Consideration

  18. 2025-02-10 Tennessee General Assembly

    Intro., P1C.

  19. 2025-02-06 Tennessee General Assembly

    Filed for introduction

  20. 2025-02-06 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 1327
By Lamberth

SENATE BILL 1323
By Johnson

SB1323
003083
- 1 -

AN ACT to amend Tennessee Code Annotated, Section
13-23-134 and Chapter 971 of the Public Acts of
2024, relative to tax credits.

WHEREAS, Tennessee has prioritized low-income and affordable housing for
Tennesseans across this great State; and
WHEREAS, to continue this State's progress in increasing low-income and affordable
housing for Tennesseans, it is important to provide mechanisms for building, developing, and
rehabilitating such housing; and
WHEREAS, there is a federal income tax liability credit for low-income housing; and
WHEREAS, the federal income tax liability credit rate for eligible developments is
determined through competitive and noncompetitive credits for new construction costs,
rehabilitation costs, acquisitions costs, and use of tax-exempt bonds; and
WHEREAS, in 2024, Public Chapter 971 was enacted, which authorizes the Tennessee
Housing Development Agency to allocate Tennessee rural and workforce housing tax credits
against taxpayer liability; and
WHEREAS, the Tennessee Housing Development Agency shall allocate such credits to
qualified projects pursuant to the agency's qualified allocation plan that is developed pursuant to
Section 42 of the Internal Revenue Code of 1986 (26 U.S.C. § 42); and
WHEREAS, under Public Chapter 971 of 2024, to the extent such qualified projects
exist, at least fifty percent of the authorized Tennessee rural and workforce housing tax credits
must be allocated to qualified projects in an eligible rural area, and no more than fifty percent of
the authorized Tennessee rural and workforce housing tax credits may be allocated to qualified
projects outside of eligible rural areas; now, therefore,

- 2 - 003083

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Section 13-23-134, is amended by deleting
subsection (f).
SECTION 2. Section 6 of Chapter 971 of the Public Acts of 2024, is amended by
deleting the second sentence in its entirety.
SECTION 3. This act takes effect July 1, 2025, the public welfare requiring it.