AN ACT to amend Tennessee Code Annotated, Title 67, relative to tax credits.
Summary
SB2151 directs the Tennessee Department of Revenue to study the potential economic impact of allowing all excise tax credits to be transferable to any person or entity other than the original recipient. The bill does not itself change the tax credit rules; instead, it creates a research and reporting requirement for the department to evaluate whether broader transferability of excise tax credits would have economic benefits or drawbacks.
The department must submit its findings and recommendations by December 15, 2026, to the Senate Finance, Ways and Means Committee and the House committee with jurisdiction over tax-related matters. Because the measure is a study bill, its immediate effect is limited to administrative analysis and legislative reporting rather than direct taxpayer relief or tax code revision.
Impact
The bill amends Title 67 of the Tennessee Code Annotated only to add a directive for the Department of Revenue to study transferable excise tax credits. It does not alter existing tax credit eligibility, transferability, or administration, but it may inform future legislation affecting businesses, taxpayers, and entities that receive or purchase tax credits. The main legal effect is to require a formal report to legislative tax committees by late 2026.
Sentiment
The available voting history suggests the bill was received favorably, with the Senate Finance, Ways and Means Committee recommending passage by an 11-0 vote. No committee transcript is available, but the unanimous vote indicates broad support or at least no recorded opposition at the committee stage. Overall, the bill appears to have been treated as a low-conflict, informational measure rather than a controversial policy change.
Contention
There is little visible contention in the available record because the bill is limited to a study and received unanimous committee support. Any potential debate would likely center on whether making excise tax credits transferable could improve economic efficiency and marketability of credits, versus concerns about revenue loss, complexity, or unintended tax planning opportunities. However, no specific objections or opposing viewpoints are documented in the provided materials.
AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 20 and Title 67, Chapter 4, Part 21, relative to credits against franchise and excise tax liability.
AN ACT to amend Tennessee Code Annotated, Title 67, Chapter 4, Part 20 and Title 67, Chapter 4, Part 21, relative to credits against franchise and excise tax liability.