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TN HB1047
Bill
Status
2/5/2025
Primary Sponsor
Pat Marsh
Click for details
AI Summary
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Creates tax credits for businesses converting to employee ownership structures (employee stock ownership plans, employee ownership trusts, or worker-owned cooperatives) for tax years 2026-2030, covering up to 50% of conversion costs with caps of $25,000 for cooperatives/trusts and $100,000 for ESOPs
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Exempts worker-owned cooperatives, employee ownership trusts, and employee stock ownership plans from Tennessee's business tax beginning January 1, 2026
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Adds "Tennessee employee-owned business" as a new category eligible for state procurement preferences, defined as businesses at least 51% owned by an employee ownership structure
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Requires the Department of Revenue to conduct outreach to minority-owned businesses about the tax credit availability and submit a report to the legislature by January 1, 2026 on metrics for measuring program effectiveness
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Unused tax credits may be carried forward for up to 25 years
Legislative Description
AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67, relative to employee-owned businesses.
Economic and Community Development
Last Action
Taken off notice for cal in s/c Business and Utilities Subcommittee of Commerce Committee
1/21/2026