Tax equivalent payments are part of TVA’s service-based mission outlined in the TVA Act of 1933, and they help support stronger communities across the region.
TVA returns 5 percent of its gross proceeds from the sale of power to the states and counties where it does business and has power facilities. Those are the seven TVA states, plus Illinois where TVA has coal reserves.
For fiscal year 2014, TVA paid more than $533 million in tax equivalent payments.
These tax equivalent payments, distributed by the states under their own formulas, help fund many different state and local government initiatives, including:
- Schools
- Fire departments and other emergency response agencies, including life-saving equipment
- Community investments that support tourism and recreation
- Human service organizations
Fiscal 2014 payments
Total payments by TVA to each state for fiscal year 2014 were:
| Alabama | $106,134,787 |
| Georgia | $8,928,969 |
| Illinois | $479,765 |
| Kentucky | $40,380,262 |
| Mississippi | $38,061,395 |
| North Carolina | $2,771,978 |
| Tennessee | $334,956,270 |
| Virginia | $1,359,336 |
| Total | $533,072,762 |