Transparency Tax Credits and a $405M Annual Impact on State Collections

According to the report of CLAIBORNE PROGRESS, Tennessee House Bill 1893 has passed bringing big changes to how taxes work in the state. Now companies getting a chunk of the $813.5 million refund have to be listed on the Tennessee Department of Economic and Community Development website. They also have to use any tax credits they got from the department to lower their refund amount. This helps keep the bill cost down.

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Tennessee HB 1893 Implements Refund Adjustments for Economic Development (PHOTO: The Center Square)

How Tennessee HB 1893 Trims Costs and Reserves Funds for Refunds

Representative William Lamberth from Portland talked about how they purposely made the bill cheaper. It started at $1.55 billion in the Senate but they brought it down to $1.2 billion in Governor Bill Lee plan. Lamberth says the goal is to get rid of the current franchise tax while making sure there extra money in case more businesses ask for refunds than expected. The bill financial note talks about how tax credits like ones for buying industrial machinery or creating jobs can affect refund amounts. There about $1.1 billion in these tax credits carried over from before.

READ ALSO: $813.5 Million Refund Transparency House Bill 1893 In Tennessee