Tenn. Code Ann. § 67-6-311: Construction machinery transferred between parent and subsidiary corporations

There is exempt from the tax imposed by this chapter the sale, transfer, or lease of construction machinery, as defined in § 67-6-102 , to or from a parent corporation and a wholly-owned subsidiary to the extent that sales or use tax at the full rate provided by Tennessee law has been previously paid on such machinery by such parent or subsidiary corporation.