Tennessee 2025-2026 Regular Session

Tennessee Senate Bill SB1185 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HOUSE BILL 952
3	3	By Brooks
4	4
5	5	SENATE BILL 1185
6	6	By Akbari
7	7
8	8
9	9	SB1185
10	10	001149
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13	13	AN ACT to amend Tennessee Code Annotated, Title 4,
14	14	Chapter 3, Part 7 and Title 67, Chapter 4, relative
15	15	to the "Small Business Growth and Empowerment
16	16	Act."
17	17
18	18	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
19	19	SECTION 1. This act is known and may be cited as the "Small Business Growth and
20	20	Empowerment Act."
21	21	SECTION 2. Tennessee Code Annotated, Title 4, Chapter 3, Part 7, is amended by
22	22	adding the following as a new section:
23	23	4-3-722. Small business growth and empowerment fund – grants.
24	24	(a) The small business growth and empowerment fund is established as a
25	25	separate account in the general fund.
26	26	(b) The small business growth and empowerment fund is to be composed of:
27	27	(1) Funds appropriated by the general assembly for the fund; and
28	28	(2) Gifts, grants, and other donations received by the department of
29	29	economic and community development for the fund.
30	30	(c) Moneys in the small business growth and empowerment fund may be used
31	31	by the department of economic and community development for program administration,
32	32	marketing expenses, and program evaluation; provided, however, such expenses must
33	33	not exceed five percent (5%) of the total amount appropriated for the program in any
34	34	fiscal year.
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39	39	(d) Subject to the availability of revenue at the end of each fiscal year, the
40	40	commissioner of finance and administration is authorized to carry forward any amounts
41	41	remaining in the small business growth and empowerment fund.
42	42	(e) Moneys in the small business growth and empowerment fund must be
43	43	invested by the state treasurer pursuant to title 9, chapter 4, part 6, for the sole benefit of
44	44	the fund, and interest accruing on investments and deposits of the fund must be returned
45	45	to and remain part of the fund.
46	46	(f) To the extent practicable, moneys from the small business growth and
47	47	empowerment fund must be spent in all three (3) grand divisions of the state.
48	48	(g) New commitments made by the commissioner of economic and community
49	49	development for grants from the small business growth and empowerment fund must not
50	50	exceed the appropriations made for the purposes of the program. In each fiscal year,
51	51	the fund must be managed so that actual expenditures and obligations to be recognized
52	52	at the end of the fiscal year do not exceed any available reserves and appropriations of
53	53	the programs.
54	54	(h)
55	55	(1) At least quarterly, the commissioner of economic and community
56	56	development shall report to the commissioner of finance and administration the
57	57	status of the commitments from the small business growth and empowerment
58	58	fund. The report must include at least the following information:
59	59	(A) The amount of each commitment accepted since the previous
60	60	report;
61	61	(B) The applicant receiving the benefit of each commitment;
62	62	(C) The total outstanding commitments; and
63	63	(D) The total unobligated balance.
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68	68	(2) A copy of the report must be transmitted to the chief clerks of the
69	69	senate and the house of representatives, the state treasurer, the state
70	70	comptroller, the office of legislative budget analysis, and the secretary of state.
71	71	(i) Grants from the small business growth and empowerment fund may be made
72	72	in all counties where the commissioner of economic and community development
73	73	determines that the grants will have a direct impact on employment and investment
74	74	opportunities for minority-owned and women-owned businesses in underserved areas.
75	75	(j) Grants from the small business growth and empowerment fund may be made
76	76	only to local governments or their economic development organizations, other political
77	77	subdivisions of the state, any subdivision of state government, or to not-for-profit
78	78	organizations.
79	79	(k) Grants from the small business growth and empowerment fund must be used
80	80	to facilitate economic development activities for minority-owned and women-owned
81	81	businesses in underserved areas or in a manner that directly impacts minority-owned
82	82	and women-owned businesses in underserved areas. These activities include:
83	83	(1) Site development activities;
84	84	(2) Infrastructure activities;
85	85	(3) Tourism-related activities;
86	86	(4) Planning activities;
87	87	(5) Training and mentoring activities;
88	88	(6) Entrepreneurship activities;
89	89	(7) Significant technological improvements; or
90	90	(8) Other economic development activities determined by the
91	91	commissioner of economic and community development to have a beneficial
92	92	impact on the economy of this state.
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97	97	(l) Notwithstanding another law to the contrary, the department shall post the
98	98	following information on its website at least quarterly:
99	99	(1) The name of each small business growth and empowerment fund
100	100	grant recipient;
101	101	(2) The amount of each fund grant; and
102	102	(3) A description of the project to be funded by each fund grant.
103	103	(m) For purposes of this section:
104	104	(1) "Minority-owned business" means a business that is a continuing,
105	105	independent, for-profit business that performs a commercially useful function,
106	106	and is at least fifty-one percent (51%) owned and controlled by one (1) or more
107	107	minority individuals who are impeded from normal entry into the economic
108	108	mainstream because of past practices of discrimination based on race or ethnic
109	109	background;
110	110	(2) "Underserved area" includes communities that have difficulty
111	111	accessing resources to start and grow businesses, including inner-city areas,
112	112	rural areas, and communities with historically high barriers to capital and credit;
113	113	and
114	114	(3) "Woman-owned business" means a business that is a continuing,
115	115	independent, for-profit business that performs a commercially useful function,
116	116	and is at least fifty-one percent (51%) owned and controlled by one (1) or more
117	117	women; or, in the case of any publicly owned business, at least fifty-one percent
118	118	(51%) of the stock of which is owned and controlled by one (1) or more women
119	119	and whose management and daily business operations are under the control of
120	120	one (1) or more women.
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125	125	SECTION 3. Tennessee Code Annotated, Section 67-4-713, is amended by adding the
126	126	following as a new subsection (c):
127	127	(1) A qualifying small business that files and pays the tax imposed by this part
128	128	may take a credit equal to fifty percent (50%) of the taxpayer's liability as calculated in §
129	129	67-4-709.
130	130	(2) A small business qualifies for the credit described in subdivision (c)(1) if:
131	131	(A) The business:
132	132	(i) Complies with a local and targeted hiring policy that the
133	133	business develops and implements in which at least fifty percent (50%) of
134	134	the persons employed reside in the community, municipality, or county in
135	135	which the business operates; or
136	136	(ii) Provides workforce training approved by the department of
137	137	economic and community development to its employees;
138	138	(B) The business applies for and receives certification from the
139	139	department of economic and community development that the business meets
140	140	the qualifications under this subdivision (c)(2) for each year in which the credit is
141	141	sought. The department shall review applications submitted by small businesses
142	142	and issue certifications as appropriate; and
143	143	(C) The business submits proof of its certification from the department of
144	144	economic and community development to the department of revenue when it files
145	145	and pays the tax imposed by this part.
146	146	(3) For purposes of this subsection (c), "small business" means a business that
147	147	is a continuing, independent, for-profit business that performs a commercially useful
148	148	function with residence in this state and has total gross receipts of not more than one
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153	153	million five hundred thousand dollars ($1,500,000) averaged over a three-year period or
154	154	employs no more than fifteen (15) persons on a full-time basis.
155	155	SECTION 4. The heading in this act is for reference purposes only and does not
156	156	constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
157	157	requested to include the heading in any compilation or publication containing this act.
158	158	SECTION 5. For purposes of promulgating forms or rules, this act takes effect upon
159	159	becoming a law, the public welfare requiring it. For all other purposes, Sections 2 and 4 of this
160	160	act take effect July 1, 2025, the public welfare requiring it. For all other purposes, Section 3 of
161	161	this act takes effect January 1, 2026, the public welfare requiring it, and applies to tax years
162	162	beginning on or after that date.