Bill > SB1596

This bill establishes a tax credit for businesses in Tennessee that make monetary contributions to eligible charitable organizations, with the credit available for tax years beginning between January 1, 2027, and January 1, 2032. A "qualified business" is defined as a taxpayer subject to excise and franchise taxes, including corporations and limited liability companies, that is approved for the credit. An "eligible charitable organization" must be a 501(c)(3) federal tax-exempt organization, a nonprofit formed under state law, and must serve at least 50% of its beneficiaries within Tennessee, with at least 25% of those beneficiaries residing in specific economically disadvantaged counties. These organizations must be approved by the governor's office of faith-based and community initiatives, which will review their projects and ensure they align with state values of volunteerism and human flourishing. The tax credit will be 50% of the monetary contribution, capped at $5,000 per qualified business per year, and no more than 20% of the total credits can go to a single charitable organization, with a limit of ten approved organizations. The bill also outlines application processes for both businesses and charitable organizations, allows for unused credits to be carried forward for up to 25 years, and requires the department to report on the program's effectiveness.

Budget and Finance

https://wapp.capitol.tn.gov/apps/Billinfo/default.aspx?BillNumber=SB1596&ga=114