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TennesseeSB 2646114th General Assembly (2025-2026)Senate

AN ACT to amend Tennessee Code Annotated, Title 7 and Title 48, relative to industrial development corporations.

Sponsored By: Kerry Roberts (Republican)

Signed by Governor

Industrial Development

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Development corporations can start mergers

A Tennessee industrial development corporation’s board can start a merger with another corporation. The board must find the merger needed or useful to carry out the corporation’s purposes and governing law. Mergers must follow Tennessee’s procedures for public benefit corporations. This changes corporate authority, not household payments. The act took effect upon becoming law.

Development corporations face tax deal checks

Outside the tax-credit housing exception, industrial development corporations need formal authority from their forming municipality or municipalities to arrange lessee tax payments. The municipalities must find that negotiating, accepting, or waiving these payments serves the corporation’s public purposes. They can require approval of agreements that accept or waive payments instead of taxes. Before making a deal that pays any taxing jurisdiction less than taxes otherwise due, the corporation must notify that jurisdiction’s chief executive in writing. That official can require legislative-body approval or state no objection. If the official requires review, the legislative body must approve before the deal is made. Without a response within 10 days of receiving notice, the corporation can proceed. For agreements covered by the separate county-approval rule, both the county mayor and county legislative body must approve in writing beforehand.

Housing tax deals bypass city delegation

Industrial development corporations can arrange payments instead of taxes for tax-credit housing projects without formal city delegation. These payments come from project lessees and must go to every applicable taxing jurisdiction. The tax benchmark is each jurisdiction’s taxes for the year before the project became a tax-credit housing project. Payments meeting or exceeding every jurisdiction’s benchmark require a city chief executive’s signed support letter filed with the corporation. Lower payments require signed support letters from the chief executive of each affected taxing jurisdiction, filed with the corporation. A city can also require approval of the agreement by ordinance or resolution.

Sponsors & Cosponsors

Sponsor

  • Kerry Roberts

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 135 • No: 1

House vote • 4/21/2026

FLOOR VOTE: REGULAR CALENDAR PASSAGE ON THIRD CONSIDERATION 4/21/2026

Yes: 85 • No: 0

Senate vote • 4/21/2026

FLOOR VOTE: as Amended Third Consideration 4/21/2026

Yes: 32 • No: 0

Senate vote • 4/8/2026

SENATE FINANCE, WAYS AND MEANS COMMITTEE

Yes: 9 • No: 1

Senate vote • 3/10/2026

SENATE COMMERCE AND LABOR COMMITTEE

Yes: 9 • No: 0

Actions Timeline

  1. Effective date(s) 05/19/2026

    5/27/2026

  2. Pub. Ch. 987

    5/27/2026

  3. Signed by Governor.

    5/19/2026Senate

  4. Transmitted to Governor for action.

    5/11/2026Senate

  5. Signed by H. Speaker

    5/7/2026House

  6. Signed by Senate Speaker

    4/30/2026Senate

  7. Enrolled and ready for signatures

    4/29/2026Senate

  8. Passed H., Ayes 85, Nays 0, PNV 3

    4/21/2026House

  9. Am. withdrawn. (Amendment 1 - HA1085)

    4/21/2026House

  10. Subst. for comp. HB.

    4/21/2026House

  11. Engrossed; ready for transmission to House

    4/21/2026Senate

  12. Passed Senate as amended, Ayes 32, Nays 0

    4/21/2026Senate

  13. Amendment withdrawn. (Amendment 1 - SA0662)

    4/21/2026Senate

  14. Senate adopted Amendment (Amendment 2 - SA0992)

    4/21/2026Senate

  15. Placed on Senate Regular Calendar for 4/21/2026

    4/17/2026Senate

  16. Placed on Senate Regular Calendar for 4/21/2026

    4/17/2026Senate

  17. Recommended for passage with amendment/s, refer to Senate Calendar Committee Ayes 9, Nays 1 PNV 0

    4/8/2026Senate

  18. Placed on Senate Finance, Ways, and Means Committee calendar for 4/8/2026

    4/7/2026Senate

  19. Action deferred in Senate Finance, Ways, and Means Committee to 4/8/2026

    4/7/2026Senate

  20. Placed on Senate Finance, Ways, and Means Committee calendar for 4/7/2026

    4/1/2026Senate

  21. Recommended for passage with amendment/s, refer to Senate Finance, Ways, and Means Committee Ayes 9, Nays 0 PNV 0

    3/10/2026Senate

  22. Placed on Senate Commerce and Labor Committee calendar for 3/10/2026

    3/4/2026Senate

  23. Action deferred in Senate Commerce and Labor Committee to 3/10/2026

    3/3/2026Senate

  24. Placed on Senate Commerce and Labor Committee calendar for 3/3/2026

    2/24/2026Senate

  25. Passed on Second Consideration, refer to Senate Commerce and Labor Committee

    2/5/2026Senate

Bill Text

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