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SB2646 • 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
Roberts, Littleton
Last action
2026-04-08
Official status
Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 1 PNV 0
Effective date
Not listed

Plain English Breakdown

The official source material does not provide detailed information on how the mergers will impact local communities or businesses, nor does it specify any particular benefits or changes to industrial development corporations.

Amending Rules for Industrial Development Corporations

This bill allows industrial development corporations to initiate mergers with other corporations in accordance with Tennessee's laws on public benefit corporations.

What This Bill Does

  • Allows the board of directors of an industrial development corporation to start a merger process if it is necessary or convenient for carrying out the purposes and provisions of this chapter.
  • Updates two parts of Tennessee’s code, Title 7 and Title 48.

Who It Names or Affects

  • Industrial development corporations in Tennessee
  • The board of directors of industrial development corporations

Terms To Know

industrial development corporation
A type of company that helps with economic growth by supporting businesses and industries.

Limits and Unknowns

  • The bill does not specify how these mergers will affect local communities or businesses.
  • It is unclear what specific benefits or changes this amendment might bring to industrial development corporations.

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 if the corporation negotiates them with lessees, provided certain conditions are met.
  • Specifies that corporations can negotiate and receive such payments directly from lessees for tax-credit housing projects without municipal delegation, as long as the payments meet specific criteria and have support letters from relevant officials.
  • The amendment text is technical and may require additional context to fully understand all implications.
  • It's unclear how this change will affect existing agreements or practices in municipalities that do not adopt ordinances requiring municipal approval for such payments.
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 municipal approval.

  • 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, such as the chief executive officer's support or approval from affected taxing jurisdictions.
  • Requires that if payments in lieu of taxes would be less than what is normally due, the corporation must notify the chief executive officers of the affected taxing jurisdictions and follow their instructions regarding whether to seek legislative body approval.
  • The amendment text does not specify all conditions under which municipalities can or cannot delegate authority to corporations for negotiating payments in lieu of taxes.
  • Some parts of the amendment are technical and may require further explanation to understand fully how they affect current practices.

Bill History

  1. 2026-04-14 Tennessee General Assembly

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

  2. 2026-04-14 Tennessee General Assembly

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

  3. 2026-04-14 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  4. 2026-04-08 Tennessee General Assembly

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

  5. 2026-04-08 Tennessee General Assembly

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

  6. 2026-04-08 Tennessee General Assembly

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

  7. 2026-04-08 Tennessee General Assembly

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

  8. 2026-04-08 Tennessee General Assembly

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

  9. 2026-04-08 Tennessee General Assembly

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

  10. 2026-04-07 Tennessee General Assembly

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

  11. 2026-04-07 Tennessee General Assembly

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

  12. 2026-04-01 Tennessee General Assembly

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

  13. 2026-04-01 Tennessee General Assembly

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

  14. 2026-04-01 Tennessee General Assembly

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

  15. 2026-03-25 Tennessee General Assembly

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

  16. 2026-03-25 Tennessee General Assembly

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

  17. 2026-03-18 Tennessee General Assembly

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

  18. 2026-03-18 Tennessee General Assembly

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

  19. 2026-03-12 Tennessee General Assembly

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

  20. 2026-03-11 Tennessee General Assembly

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

  21. 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

  22. 2026-03-04 Tennessee General Assembly

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

  23. 2026-03-04 Tennessee General Assembly

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

  24. 2026-03-04 Tennessee General Assembly

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

  25. 2026-03-03 Tennessee General Assembly

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

  26. 2026-02-25 Tennessee General Assembly

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

  27. 2026-02-24 Tennessee General Assembly

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

  28. 2026-02-18 Tennessee General Assembly

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

  29. 2026-02-11 Tennessee General Assembly

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

  30. 2026-02-11 Tennessee General Assembly

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

  31. 2026-02-05 Tennessee General Assembly

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

  32. 2026-02-04 Tennessee General Assembly

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

  33. 2026-02-04 Tennessee General Assembly

    Sponsor(s) withdrawn.

  34. 2026-02-04 Tennessee General Assembly

    Sponsor change.

  35. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  36. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  37. 2026-02-02 Tennessee General Assembly

    Assigned to s/c Cities & Counties Subcommittee

  38. 2026-02-02 Tennessee General Assembly

    P2C, ref. to State & Local Government Committee

  39. 2026-01-22 Tennessee General Assembly

    Intro., P1C.

  40. 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 
HOUSE BILL 1878
By Raper

SENATE BILL 2646
By Roberts
SB2646
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.