House Bill 1878, also known as Senate Bill 2646, amends various sections of the Tennessee Code Annotated related to industrial development corporations. The bill introduces a new provision allowing the board of directors of an industrial development corporation to initiate a merger with another corporation, following the procedures for public benefit corporations. Additionally, it modifies existing regulations concerning payments in lieu of taxes (PILOT) for tax-credit housing projects, allowing corporations to negotiate these payments without municipal delegation unless an ordinance or resolution requires such approval.

The bill also revises the conditions under which corporations can negotiate, accept, or waive payments in lieu of taxes from lessees. It mandates that any such agreements must be approved by the municipality if they involve reduced payments compared to previous tax obligations. Furthermore, it requires prior written approval from the county mayor and legislative body for payments in lieu of ad valorem taxes. These changes aim to streamline the process for industrial development corporations while ensuring that local governments retain oversight and approval authority over tax-related agreements.

Statutes affected:
Introduced: 7-53-103
Amended with SA0992 -- 04/21/2026: 7-53-103, 7-53-305