Bill > HB1494

This bill establishes a tax credit for businesses in Tennessee that make monetary contributions to eligible charitable organizations, which are defined as those approved by the governor's office of faith-based and community initiatives, exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, formed as nonprofit organizations, and serving at least 50% of their beneficiaries from Tennessee residents, with at least 25% from residents of designated "enhancement counties" (counties with specific economic development needs). Qualified businesses, which include various business structures subject to Tennessee's excise and franchise taxes, can receive a credit equal to 50% of their contribution, up to a maximum of $5,000 per business per year, for contributions made between January 1, 2027, and January 1, 2032. The bill also limits the amount of credit allocated to any single charitable organization to 20% of the total credits, with a maximum of ten organizations approved by the governor's office, which will review applications based on how contributions expand volunteerism and human flourishing in the state, requiring organizations to reapply for approval annually and limiting consecutive approvals to three years. Businesses claiming the credit must apply to the department of revenue, providing details of their contributions, and any unused credit can be carried forward for up to 25 years, with the department authorized to conduct audits and promulgate necessary rules, and required to submit a report by January 1, 2027, to the general assembly detailing metrics for measuring the tax credit's effectiveness.

Government Affairs

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=HB1494&ga=114