Headquarters Tax Credit
A headquarters tax credit is available to taxpayers establishing a qualified headquarters facility in this state. The credit is for all state sales or use taxes paid to the state of Tennessee, except tax at the rate of 0.5%, on the sale or use of building materials, machinery, equipment, furniture, and fixtures used exclusively, and computer software used primarily, in a qualified headquarters facility.
The headquarters tax credit is available to taxpayers who construct, expand, or remodel a headquarters facility in Tennessee and:
- Make a required minimum capital investment of $10,000,000 during the investment period in a building or buildings and qualified tangible personal property; and
- Create a minimum of 100 new full-time headquarters staff employee jobs, in conjunction with the construction, expansion, or remodeling of the headquarters facility.
Taxpayers must be subject to franchise and excise tax to qualify for this credit.
To receive this credit, taxpayers must submit an:
- Application for Headquarters Facility Sales and Use Tax Credit;
- Investment plan describing the proposed required capital investment, including the building materials, machinery, and equipment that will be used in the construction and/or operation of the facility; and
- A list of new full-time job positions.
Please see the Recommended Documentation for helpful information to submit a successful application.
Please see the Tennessee Sales and Use Tax Manual for more information on the headquarters tax credit.