Tennessee legislation · 114th General Assembly
Tennessee SB2646: AN ACT to amend Tennessee Code Annotated, Title 7 and Title 48, relative to industrial development corporations.
Status: Chaptered, May 27, 2026
Fiscal Summary NOT SIGNIFICANT Bill Summary ON APRIL 21, 2026, THE SENATE ADOPTED AMENDMENT #2 AND PASSED SENATE BILL 2646, AS AMENDED. AMENDMENT #2 authorizes an industrial development corporation ("corporation") to negotiate and receive from any lessee of the corporation payments in lieu of taxes with respect to a tax-credit housing project, unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes be approved by the municipality, if the payments are payable to all applicable taxing jurisdictions and meet other criteria and either of the following requirements are met: The payments are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project become a tax credit housing project and the chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation. The payments are less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of each taxing jurisdiction has executed a letter supporting the project that is filed with the corporation. Present law authorizes a corporation to negotiate and receive payments in lieu of taxes with respect to a tax-credit housing project if the payments in lieu of taxes are payable to all applicable taxing jurisdiction in which the project is located and are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project and the chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation.
What the bill says
From the amended text:
House State & Local Government 1 Amendment No. 1 to HB1878 Crawford Signature of Sponsor AMEND S e n ate Bill No. 2646 House Bill No. 1878* by deleting SECTION 2 and substituting: SECTION 2. Tennessee Code Annotated, Section 7-53-305, is amended by deleting subdivision (a)(2)(A) and substituting instead: (A) Notwithstanding this section to the contrary, and unless the municipality adopts an ordinance or resolution requiring that any agreement with respect to the payments in lieu of taxes entered into pursuant to this subdivision (a)(2) be approved by the municipality, a corporation may negotiate and receive from any lessee of the corporation, without any delegation from the municipality, payments in lieu of taxes with respect to a tax-credit housing project, if the payments are payable to all applicable taxing jurisdictions and: (i) (a) Are not less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and (b) The chief executive officer of the municipality has executed a letter supporting the project that is filed with the corporation; or (ii) (a) Are less than the taxes that would have been paid to each such taxing jurisdiction for the tax year prior to the year the project became a tax-credit housing project; and …