KNOXVILLE, Tenn.­­ – The Tennessee Valley Authority provided nearly $500 million in tax equivalent payments in fiscal 2021 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.  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 in the eight states where it sells electricity or owns generating plants, transmission lines, substations and other assets, and directly to 150 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 2021, the following tax equivalent payments were made to states and local governments:

Alabama	$ 79,334,127
Georgia	8,393,031
Illinois	349,709
Kentucky	29,650,381
Mississippi	38,168,308
North Carolina	3,047,470
Tennessee	339,518,090
Virginia	1,124,067
TOTAL	$499,585,183

 

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 $15.1 billion in tax equivalent payments, with payments in the past 10 years totaling nearly $5.4 billion.