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SB 885

Taxes - As enacted, allows nuclear energy production facilities to seek pollution control tax credits for certain machinery and equipment. - Amends TCA Title 67.

114th Regular Session (2025-2026)

Tennessee law now allows nuclear power plants to claim pollution control tax credits for machinery and equipment investments.

Comp. became Pub. Ch. 517
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Bill Summary · SB 885

Legislative bill overview

SB 885 amends Tennessee tax code to allow nuclear energy production facilities to claim pollution control tax credits for specific machinery and equipment investments. The bill became law in May 2025 after passing through committee with unanimous recommendation and receiving a companion House Bill substitution during the legislative process.

Why this is important

Nuclear facilities represent significant capital investments and infrastructure, and tax incentives can influence whether companies expand operations or build new plants in Tennessee. This policy affects state revenue, energy production capacity, and potentially employment in the nuclear sector, while also signaling state support for nuclear energy as part of the energy mix.

Potential points of contention

  • Revenue impact: Tax credits reduce state general fund revenue; the fiscal note would show how much revenue is foregone and whether it's offset by economic growth
  • Selectivity of incentives: Question of whether nuclear should receive preferential tax treatment compared to other energy sources or industries seeking similar credits
  • Environmental framing: Characterizing nuclear equipment as "pollution control" may be contested depending on one's perspective on nuclear energy's environmental classification and waste concerns

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

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