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HB 2156

Taxes, Exemption and Credits - As introduced, requires the department of revenue to study the potential economic impact of making all excise tax credits transferable to any person or entity, other than the person or entity to whom or to which the credits are initially made; requires the department to report to the finance, ways and means committee of the senate and the committee in the house of representatives having jurisdiction over tax-related matters by December 15, 2026. - Amends TCA Title 67.

114th Regular Session (2025-2026) Introduced by Charlie Baum

Tennessee orders revenue study on making excise tax credits transferable between parties to assess economic impact by December 2026.

H. Placed on Regular Calendar for 4/22/2026
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Bill Summary · HB 2156

Legislative bill overview

HB 2156 directs Tennessee's Department of Revenue to study whether excise tax credits should be made transferable between different persons or entities, rather than remaining tied to their initial recipients. The department must complete this analysis and report findings to the relevant legislative committees by December 15, 2026.

Why is this important

Excise tax credits currently benefit specific industries or activities (such as energy production, manufacturing, or environmental initiatives). Making these credits transferable could fundamentally change their value and accessibility—allowing companies to buy, sell, or trade credits rather than using only what they're directly entitled to receive. This could increase credit utilization rates or create new revenue streams for businesses, but might also reduce the intended incentive impact on target industries.

Potential points of contention

  • Credit market creation: Transferable credits could create secondary markets where businesses speculate or trade credits for profit, potentially benefiting financial intermediaries rather than the policy's original economic targets
  • Revenue impact uncertainty: Increased credit transfers might boost credit redemption rates, reducing state tax revenue in ways that differ from current projections, making fiscal planning difficult
  • Equity concerns: Companies with capital to purchase credits could gain advantages over smaller businesses that must use credits directly, potentially concentrating benefits among larger entities

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

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