Tennessee Senate Bill SB1323

Tennessee 2025-2026 Regular Session

• Introduced: 2/6/25

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

SB1323 makes two technical changes to Tennessee’s housing tax credit laws. First, it deletes subsection (f) of Tennessee Code Annotated § 13-23-134. Second, it amends Chapter 971 of the Public Acts of 2024 by removing the second sentence of Section 6. Based on the bill text, the measure appears to adjust how Tennessee’s rural and workforce housing tax credit program operates, rather than creating a new program or changing the overall purpose of the credit. The bill’s practical effect is to alter the statutory framework governing allocation of Tennessee rural and workforce housing tax credits administered by the Tennessee Housing Development Agency. Because the deleted language is tied to the 2024 enactment that established the credit program, SB1323 likely changes one or more allocation or administration rules within that program, including provisions related to qualified projects and the rural-area allocation requirement. The bill takes effect July 1, 2025.

Impact

SB1323 amends existing Tennessee housing and tax-credit statutes by removing specific language from both the Tennessee Code and the 2024 public chapter that created the rural and workforce housing tax credit program. The bill does not establish a new tax credit, but it changes the legal rules governing how the existing credit is administered and allocated by the Tennessee Housing Development Agency. Its impact is therefore on program implementation, eligibility, or distribution mechanics for affordable housing and rural housing projects.

Sentiment

The available voting history suggests broad support for the bill at the committee level. The Senate State & Local Government Committee recommended passage with amendments by an 8-0 vote, indicating no recorded opposition in that committee. No committee transcript was provided, so there is no direct record of debate, but the vote pattern suggests the measure was viewed as a relatively noncontroversial adjustment to an existing housing tax credit program.

Contention

No specific points of contention are documented in the provided materials. The only identifiable issue is the removal of statutory language from the 2024 housing tax credit law, which could affect how credits are allocated between rural and non-rural projects or how the Tennessee Housing Development Agency administers the program. However, without committee discussion, it is not possible to identify any formal objections or competing positions from legislators, agencies, or stakeholders.