Tennessee House Bill HB0952

Tennessee 2025-2026 Regular Session

• Introduced: 2/4/25
• Refer: 2/10/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 7 and Title 67, Chapter 4, relative to the "Small Business Growth and Empowerment Act."

Summary

HB0952 creates the “Small Business Growth and Empowerment Act” and establishes a new Small Business Growth and Empowerment Fund within the state general fund. The fund may receive appropriations and private donations, and the Department of Economic and Community Development may use a limited share of the money for administration, marketing, and evaluation. The bill directs that grant dollars be invested and carried forward when possible, spent across all three grand divisions to the extent practicable, and reported on quarterly to state fiscal and legislative officials. It also requires the department to post grant recipient information, award amounts, and project descriptions on its website. The grant program is targeted to economic development activities that benefit minority-owned and women-owned businesses in underserved areas. Eligible uses include site development, infrastructure, tourism-related projects, planning, training and mentoring, entrepreneurship support, technology improvements, and other activities the commissioner finds beneficial. Grants may be made only to local governments, economic development organizations, other political subdivisions, state subdivisions, or nonprofit organizations, and the bill defines minority-owned business, woman-owned business, and underserved area for program purposes.

Impact

The bill adds a new state fund and grant program to Tennessee law under Title 4, and it also amends the franchise and excise tax provisions in Title 67 to create a new tax credit for qualifying small businesses. The credit equals 50% of the taxpayer’s liability under the referenced tax calculation and is available only to businesses that either meet a local hiring requirement or provide approved workforce training, and that obtain annual certification from the Department of Economic and Community Development. The tax credit applies to tax years beginning on or after January 1, 2026, while the fund provisions generally take effect July 1, 2025. The measure would affect small businesses, local governments, nonprofits, and state economic development agencies by creating a new funding stream and a new compliance-based tax incentive.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive of small business development, workforce training, and targeted economic investment. The bill’s structure suggests a policy emphasis on directing state resources toward minority-owned and women-owned businesses in underserved communities, with transparency and reporting requirements intended to reassure oversight interests. No recorded opposition, amendments, or vote history is provided here to indicate formal controversy in the available context.

Contention

The main points of potential contention are likely to be the bill’s targeted focus and fiscal effects. Some lawmakers or stakeholders could question whether reserving grant benefits for minority-owned and women-owned businesses in underserved areas is the best use of state resources, while others may support that focus as a remedy for historic barriers to capital and credit. The new tax credit may also draw scrutiny because it reduces tax liability for qualifying small businesses and conditions eligibility on hiring or training requirements, which could be viewed as either an effective incentive or an administrative burden. Oversight, certification, and the 5% cap on administrative expenses are designed to address accountability concerns.