TN HB1767

Exempts retail sales of food and food ingredients from state sales tax for eligible families with dependents

Eligible families must have annual household income not exceeding 300% of the federal free or reduced price lunch threshold and claim a qualifying child or relative as a dependent

Families must apply to the Commissioner of Revenue with proof of eligibility, including their most recent federal tax return (Form 1040)

Approved applicants receive a sales tax exemption certificate and wallet-sized card to present to retailers at the time of purchase

Takes effect July 1, 2026 for the exemption; takes effect immediately upon becoming law for purposes of creating rules and forms