'The timing of this comprehensive tax relief package could not be better for many small businesses'
Gov. Bill Lee today signed the Tennessee Works Tax Act, the single largest tax cut in state history, to provide more than $400 million in savings for Tennessee families and businesses while supporting future economic growth. The legislation includes a three-month grocery tax holiday beginning Aug. 1.
Decades of smart fiscal stewardship have allowed us to maintain a balanced budget while cutting taxes for Tennesseans.
This year, we’re continuing that legacy by providing the largest tax cut in Tennessee history, keeping dollars in the hands of Tennessee families & small… pic.twitter.com/9ddol6Auex
— Gov. Bill Lee (@GovBillLee) May 11, 2023
The Tennessee Works Tax Act totals more than $400 million in tax cuts for Tennessee families and businesses:
- $273 million for a one-time, three-month sales tax holiday on grocery items to direct relief for Tennessee families from August 1 through October 31
- More than $150 million in annual small business tax relief, including raising the exemption threshold for the business tax, exempting the first $50,000 of net income from excise tax and protecting the first $500,000 in property investment from the franchise tax
- $64 million to simplify tax administration and conform with the federal bonus depreciation provisions of 2017 Tax Cuts & Jobs Act, allowing businesses to more quickly recover costs and further incentivize investment in Tennessee production
- Provides foundation for supporting Tennessee’s continued economic growth, aligning Tennessee with more than 30 states by adopting “single sales factor” apportionment for franchise and excise tax
