Tennessee 2025-2026 Regular Session

Tennessee House Bill HB0952 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	SENATE BILL 1185
3		-	By Akbari
	2	+	<BillNo> <Sponsor>
4	3
5	4		HOUSE BILL 952
6	5		By Brooks
7	6
8	7
9	8		HB0952
10	9		001149
11	10		- 1 -
12	11
13	12		AN ACT to amend Tennessee Code Annotated, Title 4,
14	13		Chapter 3, Part 7 and Title 67, Chapter 4, relative
15	14		to the "Small Business Growth and Empowerment
16	15		Act."
17	16
18	17		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
19	18		SECTION 1. This act is known and may be cited as the "Small Business Growth and
20	19		Empowerment Act."
21	20		SECTION 2. Tennessee Code Annotated, Title 4, Chapter 3, Part 7, is amended by
22	21		adding the following as a new section:
23	22		4-3-722. Small business growth and empowerment fund – grants.
24	23		(a) The small business growth and empowerment fund is established as a
25	24		separate account in the general fund.
26	25		(b) The small business growth and empowerment fund is to be composed of:
27	26		(1) Funds appropriated by the general assembly for the fund; and
28	27		(2) Gifts, grants, and other donations received by the department of
29	28		economic and community development for the fund.
30	29		(c) Moneys in the small business growth and empowerment fund may be used
31	30		by the department of economic and community development for program administration,
32	31		marketing expenses, and program evaluation; provided, however, such expenses must
33	32		not exceed five percent (5%) of the total amount appropriated for the program in any
34	33		fiscal year.
	34	+	(d) Subject to the availability of revenue at the end of each fiscal year, the
	35	+	commissioner of finance and administration is authorized to carry forward any amounts
	36	+	remaining in the small business growth and empowerment fund.
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39		-	(d) Subject to the availability of revenue at the end of each fiscal year, the
40		-	commissioner of finance and administration is authorized to carry forward any amounts
41		-	remaining in the small business growth and empowerment fund.
42	41		(e) Moneys in the small business growth and empowerment fund must be
43	42		invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of
44	43		the fund, and interest accruing on investments and deposits of the fund must be returned
45	44		to and remain part of the fund.
46	45		(f) To the extent practicable, moneys from the small business growth and
47	46		empowerment fund must be spent in all three (3) grand divisions of the state.
48	47		(g) New commitments made by the commissioner of economic and community
49	48		development for grants from the small business growth and empowerment fund must not
50	49		exceed the appropriations made for the purposes of the program. In each fiscal year,
51	50		the fund must be managed so that actual expenditures and obligations to be recognized
52	51		at the end of the fiscal year do not exceed any available reserves and appropriations of
53	52		the programs.
54	53		(h)
55	54		(1) At least quarterly, the commissioner of economic and community
56	55		development shall report to the commissioner of finance and administration the
57	56		status of the commitments from the small business growth and empowerment
58	57		fund. The report must include at least the following information:
59	58		(A) The amount of each commitment accepted since the previous
60	59		report;
61	60		(B) The applicant receiving the benefit of each commitment;
62	61		(C) The total outstanding commitments; and
63	62		(D) The total unobligated balance.
	63	+	(2) A copy of the report must be transmitted to the chief clerks of the
	64	+	senate and the house of representatives, the state treasurer, the state
	65	+	comptroller, the office of legislative budget analysis, and the secretary of state.
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68		-	(2) A copy of the report must be transmitted to the chief clerks of the
69		-	senate and the house of representatives, the state treasurer, the state
70		-	comptroller, the office of legislative budget analysis, and the secretary of state.
71	70		(i) Grants from the small business growth and empowerment fund may be made
72	71		in all counties where the commissioner of economic and community development
73	72		determines that the grants will have a direct impact on employment and investment
74	73		opportunities for minority-owned and women-owned businesses in underserved areas.
75	74		(j) Grants from the small business growth and empowerment fund may be made
76	75		only to local governments or their economic development organizations, other political
77	76		subdivisions of the state, any subdivision of state government, or to not-for-profit
78	77		organizations.
79	78		(k) Grants from the small business growth and empowerment fund must be used
80	79		to facilitate economic development activities for minority-owned and women-owned
81	80		businesses in underserved areas or in a manner that directly impacts minority-owned
82	81		and women-owned businesses in underserved areas. These activities include:
83	82		(1) Site development activities;
84	83		(2) Infrastructure activities;
85	84		(3) Tourism-related activities;
86	85		(4) Planning activities;
87	86		(5) Training and mentoring activities;
88	87		(6) Entrepreneurship activities;
89	88		(7) Significant technological improvements; or
90	89		(8) Other economic development activities determined by the
91	90		commissioner of economic and community development to have a beneficial
92	91		impact on the economy of this state.
	92	+	(l) Notwithstanding another law to the contrary, the department shall post the
	93	+	following information on its website at least quarterly:
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97		-	(l) Notwithstanding another law to the contrary, the department shall post the
98		-	following information on its website at least quarterly:
99	98		(1) The name of each small business growth and empowerment fund
100	99		grant recipient;
101	100		(2) The amount of each fund grant; and
102	101		(3) A description of the project to be funded by each fund grant.
103	102		(m) For purposes of this section:
104	103		(1) "Minority-owned business" means a business that is a continuing,
105	104		independent, for-profit business that performs a commercially useful function,
106	105		and is at least fifty-one percent (51%) owned and controlled by one (1) or more
107	106		minority individuals who are impeded from normal entry into the economic
108	107		mainstream because of past practices of discrimination based on race or ethnic
109	108		background;
110	109		(2) "Underserved area" includes communities that have difficulty
111	110		accessing resources to start and grow businesses, including inner-city areas,
112	111		rural areas, and communities with historically high barriers to capital and credit;
113	112		and
114	113		(3) "Woman-owned business" means a business that is a continuing,
115	114		independent, for-profit business that performs a commercially useful function,
116	115		and is at least fifty-one percent (51%) owned and controlled by one (1) or more
117	116		women; or, in the case of any publicly owned business, at least fifty-one percent
118	117		(51%) of the stock of which is owned and controlled by one (1) or more women
119	118		and whose management and daily business operations are under the control of
120	119		one (1) or more women.
	120	+	SECTION 3. Tennessee Code Annotated, Section 67-4-713, is amended by adding the
	121	+	following as a new subsection (c):
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125		-	SECTION 3. Tennessee Code Annotated, Section 67-4-713, is amended by adding the
126		-	following as a new subsection (c):
127	126		(1) A qualifying small business that files and pays the tax imposed by this part
128	127		may take a credit equal to fifty percent (50%) of the taxpayer's liability as calculated in §
129	128		67-4-709.
130	129		(2) A small business qualifies for the credit described in subdivision (c)(1) if:
131	130		(A) The business:
132	131		(i) Complies with a local and targeted hiring policy that the
133	132		business develops and implements in which at least fifty percent (50%) of
134	133		the persons employed reside in the community, municipality, or county in
135	134		which the business operates; or
136	135		(ii) Provides workforce training approved by the department of
137	136		economic and community development to its employees;
138	137		(B) The business applies for and receives certification from the
139	138		department of economic and community development that the business meets
140	139		the qualifications under this subdivision (c)(2) for each year in which the credit is
141	140		sought. The department shall review applications submitted by small businesses
142	141		and issue certifications as appropriate; and
143	142		(C) The business submits proof of its certification from the department of
144	143		economic and community development to the department of revenue when it files
145	144		and pays the tax imposed by this part.
146	145		(3) For purposes of this subsection (c), "small business" means a business that
147	146		is a continuing, independent, for-profit business that performs a commercially useful
148	147		function with residence in this state and has total gross receipts of not more than one
	148	+	million five hundred thousand dollars ($1,500,000) averaged over a three-year period or
	149	+	employs no more than fifteen (15) persons on a full-time basis.
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153		-	million five hundred thousand dollars ($1,500,000) averaged over a three-year period or
154		-	employs no more than fifteen (15) persons on a full-time basis.
155	154		SECTION 4. The heading in this act is for reference purposes only and does not
156	155		constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
157	156		requested to include the heading in any compilation or publication containing this act.
158	157		SECTION 5. For purposes of promulgating forms or rules, this act takes effect upon
159	158		becoming a law, the public welfare requiring it. For all other purposes, Sections 2 and 4 of this
160	159		act take effect July 1, 2025, the public welfare requiring it. For all other purposes, Section 3 of
161	160		this act takes effect January 1, 2026, the public welfare requiring it, and applies to tax years
162	161		beginning on or after that date.