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Tennessee Bill Grants Excise Tax Deduction for COVID-19 Relief Payments

Dated Apr. 19, 2021

Citations: H.B. 776; Public Chapter 154

SUMMARY BY TAX ANALYSTS

Tennessee H.B. 776, signed into law as Public Chapter 154, exempts eligible COVID-19 relief payments from state franchise and excise taxes.

By Representatives Lamberth, Gant, Hazlewood, Smith, Moody

Substituted for: Senate Bill No. 775

By Senators Johnson, Lundberg

AN ACT to amend Tennessee Code Annotated, Section 67-4-2006, relative to COVID-19 related relief payments.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

SECTION 1. Tennessee Code Annotated, Section 67-4-2006(b)(2), is amended by adding the following as a new subdivision:

( ) Any amount received between March 1, 2020, and December 31, 2021, through the following programs funded by the coronavirus relief fund under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (15 U.S.C. §§ 9001 et seq.), including any extension or modification thereof, or funded by appropriations under other federal law under Title VI of the Social Security Act (42 U.S.C. §§ 301 et seq.), to mitigate the fiscal effects of COVID-19, to the extent such amount would otherwise be included in net earnings or loss as defined in subsection (a):

(i) The Tennessee business relief program or the supplemental employer recovery grant program administered by the department of revenue;

(ii) The coronavirus agricultural and forestry business fund administered by the department of agriculture;

(iii) The hospital staffing assistance program or the emergency medical services ambulance assistance program administered by the department of health; or

(iv) The Tennessee small and rural hospital readiness grants program administered by the departments of economic and community development and finance and administration.

SECTION 2. Tennessee Code Annotated, Section 67-4-2006(b)(2), is amended by adding the following as a new subdivision:

() Any amount received between March 1, 2020, and December 31, 2021, out of the additional funds allocated to the payments to states for the child care and development block grant under the Coronavirus Aid, Relief, and Economic Security (CARES) Act (15 U.S.C. §§ 9001 et seq.), including any extension or modification thereof and the Further Consolidated Appropriations Act, 2020, Pub. L. 116-94, or received between March 1, 2020, and December 31, 2021, out of additional funds allocated to the payments to states for the child care and development block grant under other federal law enacted to mitigate the fiscal effects of COVID-19, and administered by the department of human services, to the extent such amount would otherwise be included in net earnings or net loss as defined in subsection (a).

SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.

PASSED: April 12, 2021

CAMERON SEXTON, SPEAKER
HOUSE OF REPRESENTATIVES

RANDY MCNALLY
SPEAKER OF THE SENATE

APPROVED this 14th day of April 2021

BILL LEE, GOVERNOR

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