Tennessee House Bill HB2182

Tennessee 2023-2024 Regular Session

• Introduced: 1/25/24
• Refer: 1/31/24
• Refer: 3/6/24
• Refer: 3/12/24
• Engrossed: 4/4/24
• Enrolled: 4/12/24
• Passed: 5/1/24
• Chaptered: 5/13/24

Caption

AN ACT to amend Tennessee Code Annotated, Section 67-6-102, relative to qualified data centers.

Impact

The effect of HB 2182 on state laws primarily concerns the incentives available to data centers operating in Tennessee. By expanding the definition of qualified data centers, the bill is likely intended to attract more data center businesses to the state, effectively increasing capital investments and job creation. This could enhance Tennessee's standing as a competitive location for technology enterprises and contribute to economic development goals.

Summary

House Bill 2182 aims to amend Tennessee Code Annotated, Section 67-6-102, with respect to 'qualified data centers.' The bill seeks to broaden the definition of what constitutes a qualified data center by allowing those that have made the necessary capital investments and created at least 15 net new full-time employee jobs to qualify, even if they are subsequently transferred to an affiliate as part of a business reorganization. This change is designed to promote economic growth by making it easier for data centers to receive certain benefits under the law.

Sentiment

The sentiment surrounding HB 2182 appears to be generally positive among stakeholders in the tech industry and economic development advocates. Supporters argue that the flexibility afforded by this bill will encourage investment and job creation in a sector that is increasingly vital to the state's economy. However, some concerns have been raised regarding the potential downsides of providing tax incentives which may not yield tangible benefits for the broader community.

Contention

Notably, the main contention surrounding HB 2182 hinges on the balance between providing incentives for businesses and ensuring that the interests of local communities are protected. Critics may express concerns that the bill's adjustments could lead to an overemphasis on corporate benefits at the expense of considering the long-term impacts on local labor markets and infrastructure. As with many economic development initiatives, the success of this bill will depend on its implementation and the measurable outcomes it produces.