Connect with us

Hi, what are you looking for?

OMD NewsOMD News


$813.5M to Tennessee House Cuts Franchise Tax Refund, Sparking Debate

(PHOTO: Walter Sanders)

Revised Requirements for Companies

$813.5M to Tennessee House Cuts Franchise Tax Refund, Sparking Debate. (PHOTO: The Motley Fool)

Efforts to Lower Refund Payouts

According to Tennessee, in a significant development Tennessee‘s House Bill 1893, aimed at repealing and refunding the state’s franchise tax has undergone notable alterations. Under the revised bill, companies set to receive a portion of the $813.5 million franchise tax refund will be required to be listed on the website of Tennessee Department of Economic and Community Development. Additionally, these companies must utilize any tax credits issued by the department to offset the franchise tax refund amount a measure intended to lower the total franchise tax refund payouts.

READ ALSO: Caught In A Catch-22: Woman Faces $2,095 Demand From SNAP Food Stamps Agency

Lamberth’s Perspective and Fiscal Implications

Representative William Lamberth, hailing from Portland emphasized the deliberate reduction in the bill’s cost which initially carried a fiscal note of $1.55 billion in the Senate version. Lamberth asserted that while he doesn’t view the current franchise tax as unconstitutional ending it represents a sound policy. Moreover, he assured that the additional funds allocated to the franchise tax refund won’t be diverted elsewhere serving as a safeguard against potential higher-than-expected refund requests. Despite the legislative overhaul certain intricacies remain unresolved. Notably, the Tennessee Department of Revenue reported a substantial $1.1 billion in tax credits carried over from the previous fiscal year comprising the credits for industrial machinery and job creation. While the bill mandates the use of these credits to offset franchise tax refund amounts, the precise impact on individual taxpayers remains unclear. Governor Bill Lee‘s budget amendment proposes injecting $351.7 million from the current year’s budget into the franchise tax refund fund with implications expected to reduce tax collections by nearly $400 million in the next fiscal year and by $405 million annually thereafter. Businesses have until February 3, 2025, to file for a rebate under the proposed legislation.

READ ALSO: Queens Assemblymember Champions Fight For Increased SNAP Benefits NYC State Budget

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like


There is finally an update on 4th stimulus check for Social Security Recipients! Individuals who receive Social Security benefits can expect to receive a...


The attack using 14 military choppers that Russian President Vladimir Putin planned was destroyed by Ukraine using US-supplied long-range tactical missiles. Russian President Vladimir...


The Biden administration has announced recently that it plans to increase the monthly payments of seniors and veterans to $2,000. $2,000 in Monthly Payments...


In Texas, this September the SNAP payments will end, worth up to $1,691, on Friday. The household income determines eligibility. A single-person household must earn more than...