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TennesseeHB 1306114th General Assembly (2025-2026)HouseWALLET

AN ACT to amend Tennessee Code Annotated, Title 7, Chapter 53; Title 9, Chapter 21 and Title 9, Chapter 23, relative to economic development.

Sponsored By: William Lamberth (Republican)

Became Law

Economic and Community Development

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Local funds can build public infrastructure

The law lets municipal development corporations support public infrastructure inside the city or town that created them. This covers projects defined in state law, like roads and utilities. These projects are now eligible within local development plans and financing.

More housing types qualify for local development

The law broadens which homes can use local development tools. “Apartment” now includes multifamily rental buildings, including affordable or workforce housing, when the board says units are for low‑ to moderate‑income people, seniors, or people with disabilities. Single‑family homes, condos, and townhomes for these groups also qualify. A prior restriction no longer applies to qualifying apartment buildings, making it easier to include them in plans.

More support for brownfield and solar projects

The law lets cities prepare economic impact plans for areas that include a brownfield site. Plans may include certain solar power facilities. Property and sales taxes in the plan area, including construction sales taxes, can be routed to the redevelopment fund and used for allowed costs. This helps pay for cleanup and reuse, but it can leave less tax money for other local services during the plan.

Stronger tax‑increment financing tools for projects

The law lets a plan send all taxes from a participating tax agency to the tax‑increment agency for certain affordable or workforce housing projects. A plan can lock in the base amount of dedicated taxes for the whole plan term when approved or when taxes first flow. Any bonds or debts under these plans can be paid only from tax‑increment revenues, though private parties may guarantee them. This strengthens project financing but directs tax growth to the plan instead of general budgets.

Faster changes to local development plans

The law streamlines changes to economic impact plans. Local governing bodies can approve amendments, and once the development corporation approves, they take effect without another public hearing. Minor edits that only clarify terms or fix wording become effective upon the corporation’s approval and do not need extra local approval. These rules apply to plans approved before or after this act.

Sponsors & Cosponsors

Sponsor

  • William Lamberth

    Republican • House

Cosponsors

  • Rush Bricken

    Republican • House

  • Mark Cochran

    Republican • House

  • Rick Scarbrough

    Republican • House

  • Ryan Williams

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 273 • No: 6

Senate vote • 4/15/2025

FLOOR VOTE: Third Consideration 4/15/2025

Yes: 28 • No: 1

House vote • 4/14/2025

FLOOR VOTE: REGULAR CALENDAR AS AMENDED PASSAGE ON THIRD CONSIDERATION 4/14/2025

Yes: 86 • No: 5

House vote • 4/14/2025

FLOOR VOTE: REGULAR CALENDAR MOTION TO ADOPT AMENDMENT # 3 BY LAMBERTH PASSAGE ON THIRD CONSIDERATION 4/14/2025

Yes: 92 • No: 0

House vote • 4/14/2025

HOUSE CALENDAR & RULES COMMITTEE

Yes: 0 • No: 0

House vote • 4/8/2025

HOUSE FINANCE, WAYS, AND MEANS COMMITTEE

Yes: 28 • No: 0

House vote • 4/2/2025

HOUSE FINANCE, WAYS, AND MEANS SUBCOMMITTEE

Yes: 10 • No: 0

House vote • 3/19/2025

HOUSE STATE & LOCAL GOVERNMENT COMMITTEE

Yes: 22 • No: 0

House vote • 3/5/2025

HOUSE CITIES & COUNTIES SUBCOMMITTEE

Yes: 7 • No: 0

Actions Timeline

  1. Pub. Ch. 353

    5/8/2025

  2. Effective date(s) 05/02/2025

    5/8/2025

  3. Signed by Governor.

    5/2/2025

  4. Signed by H. Speaker

    4/22/2025House

  5. Signed by Senate Speaker

    4/22/2025Senate

  6. Transmitted to Governor for his action.

    4/22/2025House

  7. Enrolled; ready for sig. of H. Speaker.

    4/16/2025House

  8. Received from House, Passed on First Consideration

    4/15/2025Senate

  9. Senate substituted House Bill for companion Senate Bill.

    4/15/2025Senate

  10. Passed Senate, Ayes 28, Nays 1, PNV 1

    4/15/2025Senate

  11. H. adopted am. (Amendment 1 - HA0134)

    4/14/2025House

  12. H. adopted am. (Amendment 2 - HA0343)

    4/14/2025House

  13. H. adopted am. (Amendment 3 - HA0413)

    4/14/2025House

  14. Sponsor(s) Added.

    4/14/2025House

  15. Passed H., as am., Ayes 86, Nays 5, PNV 2

    4/14/2025House

  16. Engrossed; ready for transmission to Sen.

    4/14/2025House

  17. H. Placed on Regular Calendar for 4/14/2025

    4/10/2025House

  18. Placed on cal. Calendar & Rules Committee for 4/10/2025

    4/9/2025House

  19. Rec. for pass. if am., ref. to Calendar & Rules Committee

    4/8/2025House

  20. Rec for pass if am by s/c ref. to Finance, Ways, and Means Committee

    4/2/2025House

  21. Placed on cal. Finance, Ways, and Means Committee for 4/8/2025

    4/2/2025House

  22. Action Def. in s/c Finance, Ways, and Means Subcommittee to 4/2/2025

    3/26/2025House

  23. Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/2/2025

    3/26/2025House

  24. Rec. for pass. if am., ref. to Finance, Ways, and Means Committee

    3/19/2025House

  25. Assigned to s/c Finance, Ways, and Means Subcommittee

    3/19/2025House

Bill Text

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