Taxes - As enacted, allows nuclear energy production facilities to seek pollution control tax credits for certain machinery and equipment. - Amends TCA Title 67. HB1133 has been assigned Public Chapter Number 517 by the , the official text

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~tate of {!tennessee

PUBLIC CHAPTER NO. 517

                                                 HOUSE BILL NO. 1133

              By Representatives Boyd, Lamberth, Sparks, Todd, Vital, Fritts, Davis

                                        Substituted for: Senate Bill No. 885

                              By Senators Reeves, Yager, Crowe, Southerland

         AN ACT to amend Tennessee Code Annotated, Title 67, relative to energy.

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

          SECTION 1. Tennessee Code Annotated, Section 67-4-2004(9)(A), is amended by
deleting "and wind sources" and substituting "wind sources, and nuclear energy production
facilities".

          SECTION 2. Tennessee Code Annotated, Section 67-6-205(c)(7), is amended by
deleting the subdivision in its entirety:

          SECTION 3. Tennessee Code Annotated, Section 67-6-102(46), is amended by adding
the following as a new, appropriately designated subdivision:

                    ()

                              (i) Machinery, apparatus, and equipment with all associated parts,
                    appurtenances, and accessories, including hydraulic fluids, lubricating oils, and
                    greases necessary for operation and maintenance, repair parts and any
                    necessary repair or taxable installation labor therefor, that is necessary to, and
                    primarily for:

                                        (a) Enriching uranium materials, compounds, or products,
                              including, but not limited to, gaseous diffusion enrichment technology and
                              centrifuge enrichment technology used pursuant to:

                                                  ( 1) A contract for uranium enrichment products (EUP);

                                                  (2) A separative work unit (SWU) contract; or

                                                  (3) Any contract that provides for enriching uranium
                                        materials, compounds, or products between the owner of such
                                        equipment and its customers;

                                        (b) Deconverting uranium materials, compounds, or products,
                              initially in hexafluoride form to either oxide or metallic forms pursuant to
                              any contract between the owner of such equipment and its customers,
                              including, but not limited to, an EUP contract or SWU contract, regardless
                              of the assay of the Uranium-235 isotope in the uranium materials,
                               compounds, or products to be deconverted; or

                                         (c) Converting uranium materials or compounds, initially in oxide
                              form to hexafluoride form pursuant to:

                                                   ( 1) Contracts for the supply of natural uranium in
                                         hexafluoride form ("UF6 Contracts");

                                                   (2) Conversion contracts; or

                                                   (3) Any contract that provides for converting uranium
                                         materials or products between the owner of such equipment and
                                         its customers; and
HB1133
                              (ii) Subdivision (46)( )(i) applies regardless of whether title to uranium

                    component or other raw material to be enriched, deconverted, or converted is
                    held by the owner of the equipment or the customer for which the uranium
                    materials, compounds, or products are enriched, deconverted, or converted and
                    regardless of whether the owner of such equipment sells enriched, deconverted,
                    or converted uranium materials, compounds, or products to its customers or
                    enriches, deconverts, or converts uranium materials, compounds, or products for
                    its customers on a cost-plus basis or a toll or fee basis or as part of an EUP
                    contract or SWU contract;
          SECTION 4. This act takes effect July 1, 2025, the public welfare requiring it.

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                    HOUSE BILL NO. 1133

PASSED:  April 21, 2025

                            C?Jf-

                            CAMERON SEXTON, SPEAKER
                            HOUSE OF REPRESENTATIVES

                         ~  :1,. .... '4\1\,. 'Nc.l\11

                                     \   RANDY MCN\LLY

                                     SPEAKER OF THE SENATE

t'V\C41y APPROVED this d / , day of      2025

BILL LEf, GOVERNOR