Bill Providing More Economic Development Dollars for TVA Counties on to Bevin's Desk

Mar 30, 2018

Muhlenberg County is home to a TVA plant site and would be impacted by a bill directing more dollars to economic projects in TVA counties.
Credit Becca Schimmel

A bill aimed at providing an economic development boost to 39 Kentucky counties that purchase power from the Tennessee Valley Authority—or have TVA property—is on to Gov. Matt Bevin’s desk.

As a federal entity, TVA doesn’t pay property taxes on any of its assets in 39 counties in southern, western, and parts of eastern Kentucky.  Instead, the utility pays an in-lieu-of tax to the state, which is five percent of its gross sales.


Seventy percent of that money currently goes back to TVA counties and 30 percent remains in the state’s general fund. The bill that’s passed the Kentucky House and Senate adjusts the TVA in-lieu tax payment formula to allow more dollars from the payments to be used for economic development needs.

Supporters say the funds would also allow the region more opportunities to take advantage of federal grants via local matches.

The TVA region in Kentucky includes Adair, Allen, Ballard, Barren, Bell, Butler, Caldwell, Calloway, Carlisle, Christian, Clinton, Cumberland, Edmonson, Fulton, Graves, Grayson, Harlan, Hart, Henderson, Hickman, Livingston, Logan, Lyon, Marshall, McCracken, McCreary, Metcalfe, Monroe, Muhlenberg, Ohio, Russell, Simpson, Todd, Trigg, Union, Warren, Wayne, Webster and Whitley counties.