Source: TVA | Release | August 27, 2020
The Tennessee Valley Authority is providing nearly $552 million in tax equivalent payments in fiscal year 2020 to state and local governments served by its energy generation or in areas supporting TVA properties.
At its quarterly business meeting, TVA’s board of directors approved the final tax equivalent payments for the current fiscal year, which are approximately $4 million more than 2019. The payments compensate state and local governments that cannot levy property or sales taxes on TVA as a federal entity.
TVA returns 5% of power sales revenues from the previous year in the form of tax equivalent payments to the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets, and directly to 147 local governments where TVA owns power property. The funds are distributed in monthly payments, with final payments approved at the end of each fiscal year.
In fiscal year 2020, the following tax equivalent payments are being provided to each state:
- Alabama – $87,556,791
- Georgia – $9,158,429
- Illinois – $413,784
- Kentucky – $34,399,281
- Mississippi – $42,757,727
- North Carolina – $3,365,447
- Tennessee – $372,819,792
- Virginia – $1,241,353
- TOTAL – $551,712,604
State and local governments distribute the funds according to their own formulas and discretion to support a variety of initiatives, including schools, fire departments and other emergency response agencies, tourism and recreation, and human service organizations.
Since 1941, TVA has made more than $14.6 billion in tax-equivalent payments, with payments in the past 10 years totaling over $5.4 billion, effectively becoming one of the leading business contributors to state and local budgets.
For more information about TVA and its 87-year mission of service to the Tennessee Valley, click here.