Taxes, Exemption and Credits - As introduced, exempts from the sales and use tax the purchase of a motor vehicle that is registered in this state by a qualifying member of the Tennessee national guard; applies the sales tax exemption only to the first $15,000 of the sales price and only to one vehicle sold to such individual within a five-year period. - Amends TCA Title 67, Chapter 6, Part 3.

SB 294 exempts qualifying Tennessee National Guard members from paying sales tax on the first $15,000 of a motor vehicle purchase, limited to one vehicle per five years. It applies only to vehicles registered in Tennessee and requires buyers to provide proof of active Guard membership and unit certification to sellers. The exemption covers sales tax on the vehicle's purchase price up to $15,000, not the full cost, and takes effect July 1, 2025. This directly affects Tennessee National Guard members purchasing new vehicles for personal use.