$1.6 Billion Tax Break: Tennessee Governor Bill Lee Signs New Law Eliminating Franchise Tax Property Portion – What You Need to Know!

 Tennessee Governor Bill Lee Eliminates Franchise Tax Property Portion

Tennessee Governor Bill Lee Signs Law Granting $1.6 Billion Tax Break to Businesses

According to The Center Square, Tennessee Governor Bill Lee has signed a new law that will give businesses a big tax break. The law signed on Friday changes how the state handles its franchise tax which businesses have to pay. This change is expected to cost Tennessee up to $1.6 billion. The main part of the new law gets rid of the property portion of the franchise tax. Businesses can now ask for a rebate on this tax for up to three years. This rebate can be requested for tax years ending on or after March 31, 2020. Businesses have from May 15 to November 30 this year to apply for their rebate. The Tennessee Department of Revenue has already sent out notices to businesses about this new law and its impact. The Department of Economic and Community Development will also play a role. They will post the names of the businesses that get a rebate on their website for 30 days next year. This will happen from May 31, 2025, to June 30, 2025.

Businesses getting rebates will be split into four groups. The first group gets $10,000 or more the second between $751 and $10,000 the third $750 or less and the last group is waiting for their rebates. House Majority Leader William Lamberth who’s a Republican from Portland said most rebates will go to Tennessee businesses. He noted that 81% of these businesses are in Tennessee and 62% of the rebates will help small businesses giving them refunds of $5,000 or less. To get the rebate businesses must agree not to sue the state over this tax. This is a big deal for Tennessee showing support for its businesses especially the small ones. Cutting taxes and offering rebates aims to help businesses do well and grow boosting the local economy along the way.

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$1.6 Billion Tax Break: Tennessee Governor Bill Lee Signs New Law Eliminating Franchise Tax Property Portion – What You Need to Know! (PHOTO: Tennessee Star)

Tennessee’s New Law Eliminates Franchise Tax Property Portion

The new law signed by Tennessee Governor Bill Lee represents a significant shift in the state’s taxation policy aimed at providing substantial financial relief to businesses. The centerpiece of this legislation is the elimination of the property portion of the franchise tax which businesses have traditionally been required to pay. This change is expected to cost Tennessee up to $1.6 billion reflecting the state’s commitment to fostering a more business-friendly environment.

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