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HB 2047

Taxes, Sales - As introduced, authorizes a qualified data center that applies for job tax credits to certify electronically that it has not, within the previous 12 months, been found to be in violation of the Worker Adjustment and Retraining Notification (WARN) Act, the Fair Labor Standards Act of 1938, or federal immigration laws. - Amends TCA Title 67, Chapter 6.

114th Regular Session (2025-2026) Introduced by Jake McCalmon

Tennessee bill requires data centers seeking job tax credits to certify no labor law violations in past 12 months, conditioning economic incentives on federal compliance.

Taken off notice for cal in s/c Finance, Ways, and Means Subcommittee of Finance, Ways, and Means Committee
#sales #taxes
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Bill Summary · HB 2047

Legislative bill overview

HB 2047 requires data centers seeking Tennessee job tax credits to electronically certify they haven't violated the WARN Act, Fair Labor Standards Act, or federal immigration laws within the previous 12 months. This adds a compliance verification step to the state's existing data center tax incentive program under Tennessee Code Annotated Title 67, Chapter 6.

Why is this important

Data center tax credits represent significant state revenue foregone, so conditioning them on labor law compliance ensures public incentives support employers meeting baseline federal labor standards. This addresses concerns that tax breaks might subsidize companies with poor labor practices, while also affecting data centers' eligibility for economic development benefits.

Potential points of contention

  • Burden and cost of certification: Data centers may argue the electronic certification requirement adds administrative overhead and compliance costs that could deter facility expansion or relocation to Tennessee
  • Scope of violations: The 12-month lookback period is relatively short; critics may question whether this adequately screens for persistent violators, while businesses may argue even old violations shouldn't disqualify them years later
  • Competitive disadvantage: Other states without similar restrictions could attract data center investment more easily, potentially affecting Tennessee's competitiveness in this high-value industry sector

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

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