Effective July 1, 2023, Tennessee has enacted legislation that amends the state’s definition of “industrial machinery” for purposes of the state’s industrial machinery exemption. The amended definition will now include machinery, apparatus, and equipment with all associated parts, appurtenances, accessories, repair parts, and any necessary repair or taxable installation labor that is used by the department of general services for the Megasite Authority of West Tennessee. Additionally, the amended definition includes machinery or other materials purchased by a contractor who contracts with the department of general services for the Megasite Authority of West Tennessee to complete a water pollution or sewage system project, for purposes of the state’s exemption.
(S.B. 272, Laws 2023, effective July 1, 2023)