Sales tax holiday for Orano USA project
Local officials were unaware of the provision passed by the General Assembly, but at least one expects to make up any losses with future property taxes and economic recruiting.
According to an article in Friday’s edition of the Tennessee Lookout, at least two local governments were surprised to learn that a bill passed in the 2025 session of the Tennessee General Assembly exempted the Orano USA project from the normal sales taxes that would be collected.
The article, written by Sam Stockard, quotes Oak Ridge City Manager Randy Hemann and Anderson County Mayor Terry Frank confirming to the Lookout that they didn’t find out about the state and local sales tax break for France-based Orano’s $4.5 billion project until this summer, even though the Tennessee legislature passed the exemption in April. Frank said the exemption wasn’t part of the Tennessee Nuclear Advisory Council’s recommendations, either.
The article notes that Orano is nearing a contract for the construction of the uranium enrichment project in the Roane County portion of Oak Ridge, a city made famous by the Manhattan Project and the race to develop a nuclear bomb during World War II.
Lawmakers passed Senate Bill 885/House Bill 1133, sponsored by Senator Shane Reeves and Representative Clark Boyd, at the end of the 2025 session in April, expanding the definition of “certified green energy production” to give sales and use tax credits to nuclear facilities, such as the Orano uranium enrichment project and the Type One Energy project on the former Bull Run Steam Plant site.
It quoted Hemann as saying that Oak Ridge officials aren’t overly concerned about forgoing sales tax connected to the several facilities being built in either Anderson or Roane Counties because the city expects to make up any losses with future property taxes and economic recruiting.
When the Orano project was announced in September 2024, it was described as the largest investment ever made in the Volunteer State.
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