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Taxes & Economy

Aiming to Maintain and Improve Tax Climate for Business

Through the Tennessee Chamber Tax Committee, we actively engage in a broad range of tax policy impacting business that includes franchise & excise, sales & use, business taxes, and property taxes. In addition, the Tennessee Chamber also works to enhance Tennessee’s economic development programs and frequently propose legislation to improve our tax climate and enhance our ability to expand existing business operations and recruit new businesses that result in tax and job growth across our state. The Tennessee Chamber Tax Committee believes that fair and accountable business incentives are the best way to grow our economy without tax increases. The tax committee frequently meets and engages with the Tennessee Department of Revenue on important tax policy issues and frequently testifies before the Finance committees in the Tennessee General Assembly. Over the years the Tennessee Chamber’s tax committee has worked with state officials to approve a number of tax improvements that include sales and use exemptions for business & manufacturing, single sales factor for manufacturing (saving $130 million annually), and infrastructure and transportation improvements.

The 2022 state budget includes more than $418 million in tax cuts. To name a few, sales tax reduction on agriculture machinery and equipment, and broadband tax relief for one year. Most recent legislation signed into law is Chamber-supported and continues to improve the state’s tax code and ensures Tennessee’s standing as one of the most business-friendly states in the nation. HB2144/SB2397, now public chapter 743, will allow companies doing business in Tennessee to deduct all research and development-related expenses when filing their state excise taxes. By severing Tennessee’s tax code from the federal code’s extended research and development amortization schedule, allows companies doing business in Tennessee to continue deducting those expenses from their state tax liability.

*The Tennessee Chamber also offers an annual Tax conference.

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Tennessee Works Tax Act // Senate Bill No. 275/House Bill No. 323

Governor Lee’s “Tennessee Works Tax Act” passed in the Senate on April 19, 2023, and thereafter was concurred with by the House on April 20, 2023. The Governor is expected to sign this legislation (the “Act”) into law.

The Act makes significant changes with respect to Tennessee’s business tax, franchise and excise taxes, and sales and use taxes. The following is an overview of the more significant changes as to those taxes based upon the last readily-available text from the Legislature. Unless otherwise referenced, these changes are effective upon the Act becoming law.

READ ARTICLE HERE

 

The Tennessee Chamber will work in the following areas to advance and address policy:

TAXES and ECONOMIC DEVELOPMENT – Tennessee’s revenue collections have been over-collected by $2.5 billion in the FY 2022 fiscal year. We are reviewing Tennessee’s tax policies and researching policies across the country to provide sound recommendations and keep Tennessee competitive. To ensure Tennessee continues to grow, we will work to ensure that Tennessee offers fair and accountable business incentives and protects and defends the utilization of economic development incentives. With fierce competition, Tennessee must remain competitive and work to ensure we are a welcoming state for all businesses and their employees. 

MANDATES and REGULATION – The Tennessee Chamber will work against overly-burdensome or costly government mandates, regulation, or additional insurance mandates that result in increased costs. In addition, we will support efforts to enhance the health of Tennessee’s population and sustainable healthcare policies that contribute to the growth and stability of our healthcare providers and overall industry.

© Tennessee Chamber of Commerce & Industry