For complete bill history, amendments, summary, and fiscal note information, please visit https://wapp.capitol.tn.gov/apps/billsearch/BillSearchAdvanced.aspx.
As the 114th Tennessee General Assembly moves into the third month of the 2026 legislative session, several fiscal, regulatory, and education‑related developments are taking shape that may be of interest to CPAs advising businesses, nonprofits, and governmental entities across the state. Below are a few of the bills that TSCPA’s lobbying team is monitoring. It is expected that Governor Lee will release his amended budget early this month, and the final budget will be voted on in April. We will keep you updated as the budget evolves and as any other legislative matters of interest to the accounting profession develop.
HIGHLIGHTED BILLS
SB 32 (HB 477) - Tax depreciation deduction by P. Bailey (R), K. Vaughan (R)
SB 32: Apr. 22, 2025 - Assigned to General Subcommittee of Senate Finance, Ways & Means Committee
HB 477: Feb. 03, 2026 - Taken off notice in House Department & Agencies Subcommittee.
Allows a taxpayer to annually elect to take a bonus depreciation deduction of 40 percent of the cost of assets purchased on or after January 1, 2026, during the tax year in which the assets were purchased when calculating net earnings or net losses for excise tax purposes. Allows the taxpayer to take the federal depreciation percentage if it exceeds 40 percent.
Amendment Summary: House Finance Subcommittee amendment 1, Senate Finance Revenue Subcommittee amendment 1 (003964) allows a taxpayer to annually elect to take a bonus depreciation of 100 percent of the cost of assets purchased on or after January 1 during the tax year in which the assets were purchased when calculating net earnings or net losses for excise tax purposes, if the federal depreciation percentage amount is increased to 100 percent. Requires the department of revenue to publish on its website the year in which federal bonus depreciation rate is increased to one hundred percent.
Fiscal Impact: (Dated February 28, 2025) STATE GOVERNMENT REVENUE General Fund FY25-26 ($14,400,000) FY26-27 ($47,520,000) FY27-28 ($59,616,000) FY28-29 ($18,892,800) FY29-30 $28,086,400 FY30-31 $22,470,400 FY31-32 $18,080,800 FY32-33 $15,037,600 FY33-34 $13,495,200 FY34-35 $13,105,600 FY35-36 $12,584,800 FY36-37 $10,225,600 FY37-38 $5,768,000 FY38-39 & Subsequent Years $1,574,400
Comments: We are working with the Tennessee Chamber and NFIB to mirror the Big Beautiful Bill's provision on this issue. Sponsor has indicated that funding for the bill may be an issue.
SB 752 (HB 526) - Due date for taxpayer's business tax return by Yager (R), R. Williams (R)
SB 752: Apr. 17, 2025 - Placed on Senate Finance, Ways, and Means Committee calendar for 4/21/2025
HB 526: Apr. 09, 2025 - Placed on s/c cal Finance, Ways, and Means Subcommittee for 4/14/2025
Allows the commissioner of revenue to change the due date of the taxpayer’s business tax return to not less than 60 days following the end of such taxpayer’s business tax period for the purpose of the commissioner changing the taxpayer’s business tax period to align with the taxpayer’s fiscal year.
Amendment Summary: Senate Finance Revenue Subcommittee amendment 1, House Finance Subcommittee amendment 1 (003861) exempts services furnished by persons engaged in the sale of real estate or real property from the business tax.
SB 1465 (HB 1682) - Personal Property Sales Tax by Lowe (R), L. Reeves (R).
SB 1465: Feb. 24, 2026 - Senate Finance Revenue Subcommittee returned to Senate full committee with a negative recommendation.
HB 1682: Jan. 14, 2026 - Filed for introduction
Exempts from sales and use tax labor and service costs made as part of the sale of a taxable item of tangible personal property. Exempts from sales and use tax repair and installation labor performed on tangible personal property.
SB 1542 (HB 1599) - Extends the state board of accountancy to June 30, 2030 by Jackson (R), J. Lafferty (R).
SB 1542: Feb. 19, 2026 - Senate passed.
HB 1599: Feb. 19, 2026 - Sent to the speakers for signatures.
As introduced, extends the state board of accountancy to June 30, 2030.
SB 1596 (HB 1494) - Tax credit for businesses that make contributions to organizations approved by governor's office of faith based and community initiatives by Haile (R), W. Slater (R).
SB 1596: Feb. 10, 2026 - Referred to Senate Finance Revenue Subcommittee.
HB 1494: Feb. 25, 2026 - Set for House Government Operations Committee on Mar 2, 2026.
As introduced, authorizes excise and franchise tax credit for businesses that make monetary contributions to eligible charitable organizations approved by the governor's office of faith-based and community initiatives during a five-year period.
SB 1673 (HB 1515) - Extends the deadline to file exceptions with the state board of equalization from 20 to 25 days by Johnson (R), P. Marsh (R).
SB 1673: Feb. 25, 2026 - Set for Senate State and Local Government Committee on Mar 3, 2026.
HB 1515: Feb. 25, 2026 - Set for House Finance, Ways, and Means Subcommittee on Mar 4, 2026.
As introduced, extends from 20 to 25 days the deadline by which a person or entity must file an exception with the state board of equalization regarding an assessment made by the comptroller. Broadly captioned.
SB 1706 (HB 1935) - Prohibits requiring full tax payment on property assessments while an appeal is pending by Taylor (R), K. Vaughan (R).
SB 1706: Feb. 25, 2026 - Set for Senate State and Local Government Committee on Mar 3, 2026.
HB 1935: Feb. 02, 2026 - Introduced in the House.
As introduced, prohibits a city or county collecting official from requiring a taxpayer to pay the full tax due for an assessment for which an appeal is pending before the county or state boards of equalization.
SB 1901 (HB 1709) - Requires U.S. citizenship or qualified alien status for eligibility for various professional licenses and permits by Bailey (R), M. Cochran (R).
SB 1901: Feb. 24, 2026 - Set for Senate Commerce & Labor Committee for 3/3/2026
HB 1709: Feb. 25, 2026 - Set for House Commerce Committee on Mar 4, 2026.
As introduced, specifies in various provisions that for a person to be eligible for a particular license, certificate, permit, or authorization, the person must be a citizen of the United States or a qualified alien. Broadly captioned.
Comments: This bill opens up Title 62 but does not affect accountancy. Monitoring
SB 2151 (HB 2156) - Study on the economic impact of allowing excise tax credits to be transferable to any person or entity by Walley (R), C. Baum (R).
SB 2151: Feb. 10, 2026 – Referred to Senate Finance Revenue Subcommittee.
HB 2156: Feb. 02, 2026 - Filed for introduction
As introduced, requires the department of revenue to study the potential economic impact of making all excise tax credits transferable to any person or entity, other than the person or entity to whom or to which the credits are initially made.
Requires the department to report to the finance, ways and means committee of the senate and the committee in the house of representatives having jurisdiction over tax-related matters by December 15, 2026.
Comments: Caption bill.
SB 2199 (HB 1913) - Regulatory Freedom Act of 2026 by Johnson (R), C. Boyd (R).
SB 2199: Feb. 02, 2026 - Filed for introduction
HB 1913: Feb. 02, 2026 - Introduced in the House.
As introduced, enacts the "Regulatory Freedom Act of 2026." Requires an agency holding a hearing as part of its rulemaking process to make a good faith effort to notify each trade association or organization operating in this state that represents the regulated community and that may be impacted by the new or amended rule at least 45 days prior to the public hearing for which there is a period of public comment regarding the new or amended rule. Specifies that the notice must be sent by electronic mail and must include a copy of the new or amended rule. Also specifies that the notice must request that the association or organization provide comments during any such period of public comment, or provide such comments directly to the agency, for the purpose of generating a fiscal impact statement. Defines "fiscal impact statement" to mean the estimate of the actual cost of compliance of a new or amended rule based on its projected and collective fiscal impact on the regulated industry, trade, business, or community, excluding speculative, anti-competitive, or hypothetical costs, and the assumptions and reasoning upon which the actual costs of compliance are based. Specifies other requirements for agencies in regard to fiscal impact statements. Makes other revisions related to public hearings by agencies.
SB 2498 (HB 2492) - Requires the department of finance and administration to promulgate rules for cash transaction rounding by Kyle (D), J. Powell (D).
SB 2498: Feb. 24, 2026 - Referred to Senate Finance, Ways & Means Revenue Subcommittee
HB 2492: Feb. 05, 2026 - Referred to House Banking & Consumer Affairs Subcommittee.
As introduced, requires the department of finance and administration to promulgate rules relating to cash transaction rounding.
SB 2537 (HB 2207) - Extends the application period for property tax relief refunds or credits from 35 to 45 days after taxes become delinquent by Hatcher (R), G. Hicks (R).
SB 2537: Feb. 02, 2026 - Filed for introduction
HB 2207: Feb. 02, 2026 - Filed for introduction
As introduced, increases, from 35 to 45 days, the time period, beginning from the date taxes in a jurisdiction become delinquent, within which taxpayers otherwise eligible for property tax relief must apply for a refund or present a credit voucher for credit on their taxes.
