TENNESSEE INCENTIVES 

Tennessee shows an average deal value of $2.99 million with 168 new jobs created per deal

JOBS TAX CREDIT (JTC)

The Job Tax Credit provides a one-time tax credit against both state franchise and excise tax liability. The credit is based upon net new full-time positions created in Tennessee within a 12-month period.

The JTC is comprised of the following:

  • Tax credit of $4,500 per new full-time job created in any Tennessee county.
  • Credit may offset up to fifty percent (50%) of the combined state franchise and excise taxes owed.
  • Unused credits may be carried forward for up to 15 years until exhausted.

To qualify for the JTC Company needs to meet the following requirements within 12 months of filing a business plan with the Tennessee Department of Revenue:

  • Create at least 25 new full-time jobs
  • Increase capital investment by $500,000

Qualified business enterprises that are located in Tier 2 and Tier 3 Enhancement Counties will have three and five years respectively to create the minimum 25 new full-time jobs. Refunds are provided based upon the incremental employment and withholdings generated as a result of the project.

TENNESSEE VALLEY AUTHORITY ENHANCED GROWTH CREDIT (EGC)

The Enhanced Growth Credit (“EGC”) Program is available as an economic development incentive providing credits on power bills to qualifying companies that locate or expand in the Tennessee Valley. EGC provides annual credits against electric consumption costs.

Qualifying customers may choose one of the following options for receiving EGC benefits:

  • Eight-Year Declining Option
  • Monthly credit for the first consecutive 12-month period will be $6.00 per kilowatt. The credit is then reduced by $0.75 per 12-month period for seven additional years.
  • Four-Year Flat Option
  • Monthly credit for a four-year period, beginning with the date the first credit is received, is equal to $6.00 per kilowatt.

In order to qualify, a business must meet all of the following criteria:

  • Add at least 250 kilowatts of firm power demand
  • Maintain an all-electric HVAC system
  • At least fifty percent (50%) of the interior floor space must be heated or cooled by HVAC
  • At least fifty percent (50%) of the electric load is for interior lighting, cooking and HVAC

QUALIFIED HEADQUARTERS FACILITY RELOCATION EXPENSE CREDIT

A credit is available against a taxpayer‘s franchise and excise tax liability to companies creating at least 100 new jobs. The level of the tax credit is based on qualified relocation expenses incurred by the company in establishing a qualified headquarters facility.

OTHER TENNESSEE INCENTIVE PROGRAMS

  • State Industrial Access Program
  • TVA Valley Investment Initiative
  • TVA Special Opportunities Counties Fund
  • Payment in Lieu of Taxes (PILOT) Program
  • FastTrack Economic Development Fund
  • FastTrack Infrastructure Program
  • Industrial Machinery Tax Credit
  • Manufacturing Sales and Use Tax Exemptions
  • Warehouse/Distribution Sales and Use Tax Exemptions
  • Call Center Sales and Use Tax Exemptions
  • Data Centers Sales and Use Tax Exemptions
  • FastTrack Training Program