Taxes, Excise - As enacted, authorizes, subject to certain provisions, a taxpayer, at the taxpayer's discretion, to add back to net earnings certain deductions and to subtract certain amounts. - Amends TCA Section 67-4-2, the official text

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  ~tate of ~ennessee

PUBLIC CHAPTER NO. 343

                                                  HOUSE BILL NO. 635

                                              By Representative Williams

                                        Substituted for: Senate Bill No. 439

                                           By Senators Powers, Campbell

         AN ACT to amend Tennessee Code Annotated, Section 67-4-2006, relative to taxation.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:

          SECTION 1. Tennessee Code Annotated, Section 67-4-2006(c), is amended by adding
the following as a new subdivision:

                    (10)

                              (A) Subject to subdivision (c)(10)(8), a taxpayer may, at the taxpayer's
                    discretion, add back to net earnings:

                                        (i) Any amounts taken as deductions from the taxpayer's federal
                              taxable income that are also allowed to be taken as deductions in
                              determining the taxpayer's net earnings under subsection (a); and

                                        (ii) Any amounts subtracted from net earnings under subdivision
                              (b)(2).

                              (8) Discretionary additions to net earnings made under subdivision
                    (c)(10)(A) may be made, adjusted, or removed at the taxpayer's discretion for
                    any tax year on any timely filed original or amended return; provided, however,
                    that adjustments made pursuant to this subdivision (c)(10) must not reduce a
                    taxpayer's net earnings below the amount that would have been computed for
                    the tax year without regard to this subdivision (c)(10).

          SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.
                    HOUSE BILL NO. 635

PASSED:  April 14, 2025

                               G~
                                 CAMERON SEXTON, SPEAKER
                                HOUSE OF REPRESENTATIVES

                                            RANDY M(JJALLY
                               SPEAKER OF THE ~NATE

1 APPROVED this "-d day of { \ / l ~    2025

BILL LEE, GOVERNOR       Uc.-