Bill > SB0439

This bill amends Tennessee tax law by providing taxpayers with more flexibility in calculating their net earnings for tax purposes. Specifically, the bill allows taxpayers to voluntarily add back certain deductions that were previously taken from their federal taxable income when determining their state net earnings. Taxpayers can make these discretionary additions, adjustments, or removals on any timely filed original or amended tax return, with one key restriction: these adjustments cannot reduce the taxpayer's net earnings below what they would have been without this provision. The bill also requires the Tennessee Department of Revenue to conduct a study on the economic impact of these authorized adjustments to net earnings and net losses, and if such a study is conducted, to report its findings and recommendations to the appropriate legislative committees by January 1, 2026. The act will take effect immediately upon becoming law, reflecting the state legislature's determination that it serves the public welfare.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB0439&ga=114