HB 1903 expands Tennessee's homestead property tax exemption to include adult children (18+ years old) with developmental or intellectual disabilities who live in the family home after the death of the head of household. The bill amends Tennessee law to extend the exemption to these adult children - previously only minor children or spouses were covered - provided they continue using the property as their primary residence. It references existing definitions of "developmental disability" and "intellectual disability" from Tennessee Code §52-1-101 to clarify eligibility. The changes apply to property tax protections under Titles 26, 30, 33, and 52 of Tennessee Code, effective July 1, 2026.
SB 350 prohibits Tennessee landlords from banning tenants from lawfully possessing, carrying, or storing firearms, firearm parts, or ammunition in their leased homes, apartments, or businesses, or in vehicles parked on landlord-controlled property. It directly affects tenants and landlords statewide, requiring lease agreements to comply with this rule starting July 1, 2025, with existing leases needing amendment by July 1, 2026. The bill voids any lease terms conflicting with this prohibition after July 1, 2025, and allows tenants to sue landlords for damages if they violate the law. It applies to all residential leases governed by Tennessee Code Annotated Title 66.
SB 784 changes how Tennessee financial institutions claim tax credits for loans made to housing entities. It replaces the previous method (based on a fixed unpaid principal balance) with a new calculation using the *month-end average unpaid principal balance* of those loans. Financial institutions now qualify for a 3% annual credit on regular qualified loans and a 5% credit on low-rate loans, applied over the loan’s life or 15 years, whichever ends first. This bill directly affects banks and credit unions that provide eligible housing loans, adjusting the tax credit amount under Tennessee Code §67-4-2109. The changes take effect July 1, 2025.
HB 691 changes how Tennessee financial institutions calculate tax credits for loans to housing entities. It shifts the calculation from a single "unpaid principal balance" to a "month-end average unpaid principal balance" over each loan's life. This affects financial institutions providing qualified loans for eligible housing activities, with credits now set at 3% annually for standard loans or 5% for low-rate loans. The change applies to the institution's fiscal year and ends after 15 years or the loan's maturity, whichever comes first. The bill took effect January 1, 2026.
SB 1313 changes Tennessee property development law by establishing a property owner's rights upon *submitting* a development plan or building permit, rather than waiting for local government *approval*. This affects developers and local governments, as it secures rights for three years starting from the submission date. The law requires plans to substantially comply with local ordinances, fixes development standards in place at submission for the entire vesting period, and shifts key terms from "approval" to "submission" throughout the code. The bill is now enacted (effective July 1, 2025), streamlining the timeline for project certainty.
SB 207 creates a new "farmland preservation fund" within Tennessee's state budget to support the long-term protection of agricultural and forested land. The fund provides grants to help farmers and foresters place permanent conservation easements on their property - legal agreements that prevent development while allowing farming or forestry activities. These grants can be awarded directly to landowners or to qualified nonprofit organizations (like 501(c)(3) groups) that hold the easements, with requirements including proof of the easement agreement and ongoing agricultural use. The Tennessee Department of Agriculture will manage the fund, and unspent money will carry forward annually instead of reverting to the general budget.
SB 773 prevents development permits from expiring when lawsuits challenge them. It pauses the "vesting period" (the timeframe protecting approved projects) during ongoing court cases, ensuring developers retain their project rights. This directly affects property developers and construction companies with permits facing legal disputes. The law creates certainty for development timelines by halting the expiration clock while litigation proceeds.
SB 110 expands an existing residential pilot program for people with disabilities to include the eastern part of Tennessee, which previously only covered the western and middle regions. It requires one facility in each grand division (eastern, middle, western) and sets specific eligibility rules for eastern division participants, including a minimum 26-acre property in a county with 108,600-108,700 residents (per 2020 census), offering services for up to 60 additional adults with intellectual/developmental disabilities, and dedicating 25% of homes to inclusive housing. Applications for eastern division participation must be submitted by March 31, 2026, with facilities needing completion by June 30, 2028. The bill modifies licensing and reporting requirements for these facilities under Tennessee’s disability and aging department.
SB 26 amends Tennessee law to raise the minimum required capital cost for infrastructure development districts from $500,000 to $1,000,000. This change directly affects developers and local governments creating such districts by requiring larger initial investment commitments. The bill modifies Tennessee Code Annotated Section 7-84-711(a) to reflect this increased threshold. It became effective May 5, 2025, after being signed by the Governor.
HB 496 amends Tennessee's ABLE (Achieving a Better Life Experience) account rules to allow account earnings to be used for non-education expenses, such as housing or transportation, rather than being restricted to education costs. It aligns Tennessee's definitions of "disability certification" and "eligible individual" with federal Internal Revenue Code standards. The bill directly affects Tennesseans with disabilities who use ABLE accounts to manage savings without losing federal benefits. Key changes include removing the education-only spending restriction and updating account ownership rules to match IRS guidance. The law became effective May 2, 2025, with some provisions taking effect January 1, 2026.
