April 26, 2018
The 110th General Assembly adjourned sine die just shy of 11:00 last night. It was a bittersweet moment for many, as the number of legislators running for other offices or retiring is significant and for those, it was the final day of a long career.
TN Ready testing issues and a squabble between the House and Senate kept the session a few hours longer than was expected, but overall, this General Assembly is very pleased with their pro-business approach to legislation and for passing a balanced budget that focused more on people and less on programs.
The TN House felt strongly that all should be held harmless by the testing company challenges. They joined the Senate and ultimately passed a last minute bill which held harmless all students, teachers and administrators from any negative scores experience in this most recent round of testing.
Working with the TN Chamber of Commerce, HB 2310 passed which effectively “decouples” Tennessee when computing net earnings and net loss under excise and franchise tax law effective for tax years beginning on or after January 1, 2020. Essentially, Section 163(j) of the Internal Revenue Code (concerning the limitation on business interest) must be applied as it was in effect immediately before the enactment of Public Law Number 115-97 (the "Tax Cuts and Jobs Act").
A second provision also decouples Tennessee in that there will be subtracted from net earnings and net losses any amount that the taxpayer would have excluded from federal taxable income as a result of applying Section 118 of the Internal Revenue Code (concerning contributions to the capital of a corporation) as it existed and applied immediately before enactment of the Tax Cuts and Jobs Acts.
The amendment offered by Sen Joey Hensley (R-Hohenwald) on the administration opioid bill was reconsidered and removed by Senate floor action yesterday. The bill passed in the same form that it came out of the House and Senate Committees.
We will send weekly reports this week which should include final action on all the bills that we have been monitoring on your behalf. Once Public Chapters have been assigned, we will send additional reports. In the interim, please call with any questions.
The end of session means many things. For one, Estie wears her "cow pants." It also means some last minute lobbying as witnessed here reviewing vote counts with Rep Charles Sargent (R-Franklin). The bill Mandy Young and Estie were discussing with him was his final bill passed on the House floor. Charles will be dearly missed. Photo credit to our friend Jim Schmidt who tweeted this photo last night.
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