TN HB0635

Amends Tennessee Code Annotated, Section 67-4-2006(c) to allow taxpayers discretionary authority to add back certain deductions to their net earnings for tax purposes

Taxpayers may add back amounts taken as federal taxable income deductions that are also allowed as deductions in determining net earnings, as well as amounts subtracted under subdivision (b)(2)

Discretionary additions can be made, adjusted, or removed on any timely filed original or amended return for any tax year

Adjustments cannot reduce a taxpayer's net earnings below what would have been computed without using this discretionary provision

Passed April 14, 2025 and approved by Governor Bill Lee on May 2, 2025, taking effect immediately upon becoming law