Tennessee House Bill HB0725

Tennessee 2023-2024 Regular Session

• Introduced: 1/27/23

Caption

AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 20 and Title 67, Chapter 4, Part 21, relative to taxation.

Impact

The introduction of HB 0725 is expected to provide greater transparency and understanding of the fiscal implications related to industrial machinery tax credits in Tennessee. By requiring a formal report, the General Assembly will gain insights into the financial impact of these tax credits, which could influence future policy decisions regarding taxation in the state. Furthermore, the amendment could make it easier for legislators to evaluate the effectiveness of these tax incentives in promoting economic growth and supporting local industries.

Summary

House Bill 0725 seeks to amend the Tennessee Code Annotated regarding taxation, particularly focusing on industrial machinery and associated tax credits. The bill mandates that by February 1, 2024, the Commissioner of Revenue must report to the finance, ways and means committees of both the Senate and the House of Representatives. The report will include the total annual amount of industrial machinery franchise and excise tax credits given during the fiscal years 2021 to 2023. This action aims to streamline the oversight and accountability of the tax credits associated with industrial machinery in Tennessee.

Contention

While the text does not detail significant points of contention surrounding HB 0725 specifically, any amendments regarding taxation typically evoke discussions on the balance between incentivizing industry and maintaining state revenue. Stakeholders may debate the appropriateness of the tax credits, their effectiveness in fostering economic activity, and potential consequences for state funding. Additionally, differing viewpoints may arise from various stakeholders, including lawmakers focusing on fiscal responsibility and those advocating for increased industrial investment.