TN SB1596

Creates a 50% tax credit for businesses making monetary contributions to eligible charitable organizations, effective for tax years January 1, 2027 through January 1, 2032

Caps the credit at $5,000 per qualified business per contribution to each eligible charitable organization per tax year

Limits eligible charitable organizations to a maximum of 10 approved by the Governor's Office of Faith-Based and Community Initiatives, with no single organization receiving more than 20% of total allocated credits

Requires eligible charities to be 501(c)(3) nonprofits serving at least 50% Tennessee residents and at least 25% residents from tier 3 or tier 4 enhancement counties (economically distressed areas)

Allows unused credits to be carried forward for up to 25 years, and requires the department to report metrics to legislative finance committees by January 1, 2027