Tennessee Senate Bill SB1246

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

Caption

AN ACT to amend Tennessee Code Annotated, Title 4, Chapter 3, Part 5 and Title 67, relative to energy.

Summary

SB1246, titled the "Clean Energy and Jobs Act," creates a new clean energy workforce training fund in the state treasury and directs the Department of Environment and Conservation’s Office of Energy Programs to administer grants from that fund. Those grants may be used only for clean energy workforce training projects, and the office must establish eligibility criteria and an application process by rule. The bill also allows the department to accept public or private gifts and grants for the fund, with those monies and any investment earnings or unspent balances carried forward rather than reverting to the general fund. The bill further amends Tennessee tax law to create a 30% sales and use tax credit for certain purchases used by renewable energy businesses or by small businesses implementing or improving sustainable practices. Eligible renewable energy businesses include entities involved in developing, manufacturing, installing, or maintaining goods that generate electricity or heat from renewable sources such as solar, wind, hydropower, geothermal, or biomass. Eligible small businesses are those with 50 or fewer full-time employees, and the credit applies to systems, devices, appliances, or improvements primarily used for renewable-energy production or environmentally sustainable business practices. The Department of Revenue must adopt rules to implement the credit, and the act takes effect for rulemaking upon becoming law, with the substantive provisions effective January 1, 2026.

Impact

The bill would add a new state-administered grant program and a new tax credit to Tennessee law. It amends Title 4 to establish the clean energy workforce training fund and authorize the Department of Environment and Conservation to distribute grants for training programs, while also amending Title 67 to create a sales and use tax credit for qualifying renewable energy businesses and small businesses adopting sustainable practices. The measure would affect state budgeting, tax administration, and agency rulemaking, and it would create new opportunities for clean energy employers, training providers, and small businesses investing in environmentally focused equipment or processes.

Sentiment

No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available materials. Based on the bill text alone, the measure appears designed to promote clean energy jobs, workforce development, and environmentally sustainable business activity, suggesting a generally pro-clean-energy policy orientation. The absence of recorded discussion makes it impossible to identify whether the bill was broadly supported, opposed, or amended in committee.

Contention

The main likely points of contention are the creation of a dedicated state fund, the use of public money for grants, and the revenue impact of a new 30% sales and use tax credit. Critics could question whether the bill favors certain industries, whether the definition of renewable energy business or sustainable practices is broad enough, and whether the tax credit is too generous or difficult to administer. Supporters would likely emphasize workforce development, job creation, and incentives for cleaner business practices, but no specific objections or proponents are identified in the provided record.