Tennessee House Bill HB1327

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25
• Refer: 2/12/25
• Refer: 3/12/25

Caption

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

Summary

HB1327 amends Tennessee law governing tax credits related to affordable housing and rural/workforce housing development. The bill deletes subsection (f) of Tennessee Code Annotated § 13-23-134 and removes the second sentence of Section 6 of Chapter 971 of the Public Acts of 2024. Based on the bill text, the measure appears to revise or eliminate a statutory provision tied to the administration or allocation of housing-related tax credits. The legislation is framed as part of Tennessee’s broader effort to support low-income, affordable, rural, and workforce housing. It references the federal low-income housing tax credit structure and the Tennessee Housing Development Agency’s authority to allocate state rural and workforce housing tax credits under the agency’s qualified allocation plan. The effective date is July 1, 2025.

Impact

HB1327 would change the statutory framework for Tennessee housing tax credits by removing one provision from Tennessee Code Annotated § 13-23-134 and narrowing language added in the 2024 public chapter on rural and workforce housing tax credits. The practical effect is to alter how the Tennessee Housing Development Agency administers or limits those credits, potentially affecting developers, housing projects, and the distribution of state tax incentives for affordable housing. Because the bill targets a recent enactment, it likely adjusts the implementation details of the 2024 housing tax credit program rather than creating a wholly new program.

Sentiment

The available legislative history suggests generally favorable sentiment toward the bill. In the House Cities & Counties Subcommittee, the measure received a 7-0 recommendation for passage as amended and referral to the State & Local Government Committee, indicating bipartisan or at least unanimous support at that stage. The bill’s findings also emphasize affordable housing goals, which likely contributed to a positive reception.

Contention

No committee transcript is available, so specific objections are not documented in the provided materials. The main point of possible contention is the bill’s effect on the allocation and structure of housing tax credits, especially any change to the balance between rural and non-rural projects established in the 2024 law. Stakeholders most likely to care include the Tennessee Housing Development Agency, affordable housing developers, rural housing advocates, and local governments concerned with how tax credits are distributed.