Scope
The Tennessee Department of Revenue Sales and Use Tax Manual (Published: December 2025), section 6, Qualified Data Center, says businesses that qualify as data centers may purchase computers, software and related devices used in operating a qualified data center tax exempt; that qualification requires, over a 3-year period, a capital investment of more than $100,000,000 and at least 15 net new full-time jobs paying at least 150% of the state average occupational wage; that there is also an exemption for backup power infrastructure and cooling equipment and a 1.5% reduced sales tax rate for electricity; and that, effective May 1, 2024 in the manual's words, a qualified data center also includes one transferred to an affiliate after previously meeting the investment and jobs requirements. It is the department's manual, not the statute.
- Geographic scope
- Tennessee
- Jurisdiction
- State
- Authority type
- Government agency
- Issuing authority
- Tennessee Department of Revenue
Dates
- Adopted
- No adoption day is recorded
- Effective
- Not a binding measure
- Scheduled expiration
- None scheduled
- Ended
- Not recorded as ended
- Completion condition
- None stated
- Source document
- The source page states no document date
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
The Department of Revenue's December 2025 sales and use tax manual describes Tennessee's qualified data center exemption for computers, software and related devices, its investment and jobs thresholds, an exemption for backup power and cooling equipment, and a 1.5% sales tax rate on electricity. The statute and Public Chapter 886 could not be opened, so the manual is recorded as informational.
What this does not establish
- The manual is agency guidance, not the enacted statute. The session-law and code hosts (publications.tnsosfiles.com, capitol.tn.gov, wapp.capitol.tn.gov, sos.tn.gov) refused automated access, so Public Chapter 886 and the codified sections were not opened.
- The manual prints 'Published: December 2025' without a day; no effective date is stored. 'Effective May 1, 2024' is the manual's statement, not a date taken from an opened act.
- The manual's footnote citations to the Tennessee Code were not opened.
Unresolved questions
- The current codified text of the Tennessee Code sections the manual cites, and the enrolled text of Public Chapter 886.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- No related action is recorded.
Sources
https://www.tn.gov/content/dam/tn/revenue/documents/tax_manuals/december-2025/Sales-Use-Tax-Manual.pdf