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SB 1246

Energy - As introduced, enacts the "Clean Energy and Jobs Act"; creates the Clean Energy Workforce Training Grant Fund; establishes a tax credit for certain systems, methods, improvements, structures, devices, or appliances used by renewable energy businesses, and small businesses to implement or improve the business's sustainable practices. - Amends TCA Title 4, Chapter 3, Part 5 and Title 67.

114th Regular Session (2025-2026) Introduced by Jeff Yarbro

Tennessee establishes clean energy workforce training grants and tax credits for renewable energy and small businesses implementing sustainable practices.

Passed on Second Consideration, refer to Senate Energy, Ag., and Nat. Resources Committee
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Bill Summary · SB 1246

Legislative bill overview

SB 1246 establishes Tennessee's "Clean Energy and Jobs Act," which creates a dedicated grant fund for clean energy workforce training and introduces tax credits for renewable energy businesses and small businesses that invest in sustainable practices or equipment. The bill modifies Tennessee's tax code to incentivize clean energy adoption and workforce development in the renewable sector.

Why is this important

Clean energy workforce training directly addresses labor shortages in growing renewable industries while potentially creating job opportunities in Tennessee. Tax credits can lower barriers for businesses—particularly smaller ones—to transition toward sustainable practices, affecting both environmental outcomes and business competitiveness. The bill signals state-level commitment to renewable energy development during a period of national energy transition.

Potential points of contention

  • Tax revenue impact: Tax credits reduce state revenue; opponents may question the cost-benefit analysis and whether incentives effectively drive new investment or primarily subsidize projects that would proceed anyway
  • Definition scope: The bill's broad language around "sustainable practices" and eligible businesses could create ambiguity in implementation, potentially favoring certain industries or creating administrative complexity
  • Geographic equity: Workforce training and tax credit benefits may concentrate in urban areas with existing renewable infrastructure, potentially disadvantaging rural communities despite their clean energy resources

Compiled from official sources — confirm details with the bill’s official record.

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