Tennessee Department of Economic and Community Development
Credit of $4,500 per new job to offset up to 50% of franchise and excise taxes
Must create at least 25 new jobs within a 36 month period and invest at least $500,000 in a qualified business enterprise. May offset up to 50% of franchise and excise taxes and be carried forward for 15 years. The credit may not be taken until the year the 25 job threshold is met unless the business has requested and received a waiver.
Developed to encourage job creation.
Tags: Employment,
Allows a qualified business locating or expanding in a Tier 2 county may take 3 years to create 25 jobs, and business locating or expanding in a Tier 3 county may take 5 years to create 25 jobs
The Enhanced Job Tax Credit for Tier 2 and Tier 3 Enhancement Counties is in addition to the regular Job Tax Credit and cannot be carried forward. If a qualified business enterprise locates or expands in a Tier 2 or Tier 3 Enhancement County, the company will be eligible for an annual Enhanced Job Tax Credit of $4,500 for each qualified job, provided that the job remains filled during the year in which the credit is being taken. The annual credit may be used to offset up to 100% of the company's total franchise and excise (F&E) tax liability each year for a three-year period in Tier 2 counties and a five-year period in Tier 3 counties.
The Enhanced Job Tax Credit was created to promote new industry locations and expansions in more rural areas of the state.
Credit of $5,000 per new job to offset up to 100% of franchise and excise taxes for a period of 3 to 20 years; Note: The investment period for the Super Credit is 3 years, but can be expanded to 5 years for investments of $100 million or more and to 7 years for investments of $1 billion or more with the approval of the Commissioner of Economic and Community Development.
Company must invest capital of $100 million or more and create a minimum of 100 jobs paying at least 100% of Tennessee's average occupational wage or invest $10 million in a qualified headquarters facility and create at least 100 new headquarters jobs paying 150% of the average occupational wage. These credits can be used to offset up to 100% of the company's F&E tax liability each year for 3 to 20 years starting the first tax year after the job creation and capital investment thresholds have been met. In addition to the jobs portion of the Super Credit, a company that qualifies for the Super Credit may exempt two-thirds (2/3) of the required capital investment made during the investment period from the property measure of its franchise tax base on Schedule G of the company's F&E tax return during the tax years in which the annual credit is actually taken.
Created to incentivize larger, more capital-intensive investments.
Tax credit for the purchase of materials related to the construction of a data center
Applies to buildings housing high technology computer systems and related equipment in which the taxpayers had made a minimum capital investment of $250 million and has created 25 new jobs paying at least 150% of the state's average occupational wage. Investments must be made during a 3 year period, but can be extended to 7 years at the discretion of the Commissioner of Economic and Community Development; The purchase of computers, computer systems, computer software and repair parts for a qualified data center are considered purchases of industrial machinery and qualify for a minimum 5% Industrial Machinery Tax Credit against F&E liability. Computers, computer systems, computer software and repair parts used in qualified data centers are classified as industrial machinery and exempt from sales and use taxes. Qualified data centers also pay reduced sales taxes on the purchase of electricity (1.5% vs. the previous rate of 7%).
Created to assist expanding and emerging tech companies with expansion.
Funds for public infrastructure improvements to facilitate business development
Local community must apply with commitment from specific private-sector company. Qualifying projects must involve companies engaging in manufacturing or other economic activities beneficial to the state of Tennessee. Companies for whom more than 50% of the product or service is involved in the manufacture of products for export are also eligible. FIDP grants require local community matching funds calculated along a varying scale based on a community's ability to pay.
Created to encourage companies to locate or expand in certain communitites, and to create or retain jobs for Tennesseans.
Reimburses up to 100% of eligible job training expenses for new or expanding companies, and assists with development of training plans
This incentive is available to both new and expanding industry and begins with a company developing a training plan including the number of people to be hired, types of skills required and types of training needed. The plan is developed in conjunction with the FastTrack staff and is designed to be customizable and flexible. Companies will track costs associated with implementation of the training program, then submit to the state for reimbursement. Job training assistance can include either traditional or job based training reimbursement.
Created to assist companies in training new employees.
Tax credit against expenses incurred in relocating a headquarters
Companies establishing a qualified headquarters facility may qualify for credits against their franchise and excise tax liability based on the amount of qualified relocation expenses incurred in the establishment of a headquarters facility. This is a fully refundable tax credit. Credits range from $10,000 to $100,000 per position.
Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.
Tax credit of up to 50% of franchise and excise tax liability for purchasing, installing, or repairing industrial machinery
The credit applies to the purchase, installation and repair of industrial machinery as defined in T.C.A. 67-6-102. The credit also applies to the purchase and installation of computer, computer software and certain peripheral devices purchased in order to meet the capital investment thresholds of the Job Tax Credit. Any unused Industrial Machinery Tax Credit may be carried forward for up to 15 years. The percentage of Industrial Machinery Credit allowed is dependent upon the investment made during the investment period, from 1% to 10%.
Created to encourage capital investments in industrial machinery.
Extends certain tax credits to businesses qualified as an "integrated supplier" or "integrated customer"
Must be located within the footprint of a project meeting the $1 billion investment threshold and creating 500 or more occupational wage jobs. An integrated supplier or integrated customer locating within the footprint of such a project will qualify for a Job Tax Super Credit equal to $5,000 per qualified job with a 15 year carry-forward, plus an additional $5,000 per job each year for 6 years. The Integrated Supplier Tax Credit applies regardless of capital investment or number of jobs created.
The purpose of the Integrated Supplier and Integrated Customer Tax Credit is to expand the impact of large "anchor" projects by encouraging co-location of suppliers and customers.
Reimburses up to 50% of job training expenses in the first 90 days and up to 100% after 180 days
An expedited method for reimbursement of training costs. JBT is available in the FastTrack Job Training Assistance Program (FJTAP), as well as Tennessee Job Skills (TJS), as a possible reimbursement method. In order to qualify, companies must work with ECD to reach a contractual agreement that determines cost-per-job and the total commitment of jobs. Once agreed upon with ECD, companies can seek reimbursement of 50% of the cost-per-job within the first 90 days after the job is created and maintained. The remaining 50% can be claimed 180 days after the job is created and maintained. Note: 1) The company must agree to provide documentation, including the number of jobs created; 2) Multi-year contracts between a company and ECD can be reached to accommodate multi-year job creation projects; and 3) If the total commitment of jobs is reached, companies may seek the entire training reimbursement allocation through JBT.
Created to be a faster way for businesses to get reimbursed for job-based training.
Tags: Employment,
Allows headquarters to convert unused net operating losses (NOL) to a credit against franchise and excise tax liability
Companies with a regional, national or international qualified headquarters facility in Tennessee may, with approval from the Commissioner of Revenue and the Commissioner of Economic and Community Development, convert unused net operating losses (NOL) to a credit against franchise and excise tax liability. The NOL credit is available only if the company is unable to use the NOL to offset net income during the current tax year.
Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.
Provides loans at below market rates to rural micro-businesses and micro-enterprises
Rural Small Business and Entrepreneurship Loan Fund helps small businesses, specifically micro-businesses or micro-enterprises grow and maintain their businesses. Must be a business with fewer than 10 employees including the owners. Company must be located in rural Tennessee.
Established to provide an alternative source of capital to small business owners who can't get conventional bank loans and don't want to use credit cards.
Tags: Capital,
A credit equal to 6.5% of the 7% state sales and use taxes available to emerging industries
Tennessee law makes a sales and use tax credit available to taxpayers that establish a qualified facility to support an emerging industry in Tennessee with a minimum capital investment of $100 million and the creation of at least 50 new full-time jobs paying 150% of Tennessee's average occupational wage. The credit is equal to 6.5% of the 7% state sales and use tax paid to Tennessee on the sale or use of qualified tangible personal property.
Created to promote the development of emerging, high-tech, and clean energy industries in Tennessee.
Credit of 6.5% of the 7% state sales and use tax for qualified headquarters
Credit for sales and use tax paid on qualified tangible personal property purchased for the headquarters during the investment period. The investment period for the sales and use tax credit begins one year prior to construction or expansion and ends one year after construction or expansion is substantially complete and cannot exceed 6 years. Note: The taxpayer must file and receive approval of the Qualified Headquarter Business Plan with the Department of Revenue before taking the sales and use tax credits.
Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.
Tax credit of $5,000 for each new high-wage job created, offsetting up to 100% of franchise and excise taxes; Note: The investment period for the Super Credit is 3 years, but can be expanded to 5 years for investments of $100 million or more and to 7 years for investments of $1 billion or more with the approval of the Commissioner of Economic and Community Development.
Must commit to $10 million capital investment and create at least 100 headquarters jobs paying 150% of the average occupational wage in establishing or expanding a qualified headquarters facility. Credit good for three years with no carry forward. The Commissioner of Revenue may lower the wage requirement and investment criteria for a qualified headquarters facility if the headquarters locates in a Central Business District or Economic Recovery Zone. The investment period for the Super Job Tax Credit is 3 years, but may be expanded to 5 years with approval from the Commissioner of Economic and Community Development.
Developed to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.
A special training reimbursement program for emerging, high-demand, and technology focused businesses
Similar to FJTAP, but with a focus on employers and industries that create high-skill, high-wage jobs in emerging, high-demand and technology focused sectors of the economy. Training staff work with companies to develop a unique, flexible, comprehensive training plans that meet the company's initial training needs and follow up to ensure each phase of the program meets the company's needs. Companies track costs and apply to the State for reimbursement. Reimbursement rates depend on the level of training and the types of instructors utilized.
Created to assist companies in hiring new employees.