Economic and Community Development - As enacted, prohibits an employer seeking to receive an economic development incentive from the state from entering into a community benefits agreement or similar legal contract if the agreement or contract imposes obligations or conditions on the employer regarding employment practices, benefits, or operations that are not directly related to the performance of the employer’s duties under the economic development incentive. - Amends TCA Title 4.

HB 1096 prohibits Tennessee employers seeking state economic development incentives (like tax breaks or grants) from entering into community benefits agreements that impose conditions on employment practices, benefits, or operations unrelated to the incentive program. The bill defines such agreements as those requiring employers to fund community services, set wage standards, or use unionized labor, and amends state law to block these conditions from being tied to incentives. This change, effective July 1, 2025, ensures state incentives remain focused on economic development goals without additional community mandates. It directly affects businesses pursuing state incentives and community groups attempting to negotiate such agreements.