Business Incentives & Financial Credit
Access tax credits, grants, and exemptions to lower costs when you create jobs, invest, or expand in Tennessee.
Wage bonus for operating in distressed or at-risk counties.
Description
For projects located in "At-Risk" (35% premium) or "Distressed" (50% premium) Counties, as defined by the Appalachian Regional Commission.
Eligibility
Project must provide an average starting wage that meets or exceeds the county median wage.
Minimum credit amount awarded per new job created in key areas.
Description
Credit of $2,500 per each position.
Eligibility
10 net new full-time positions paying average occupational wage.
Census tracts with > 30% poverty rate.
Extra tax credits for locating in high-need counties.
Description
Additional annual credit for relocations/expansions in Tier 2, 3, and 4 Enhancement Counties.
Can offset up to 100% of F&E (Franchise & Excise tax) liability.
Eligibility
Tier 2 (3 years)
Tier 3 (5 years)
Tier 4 (5 years)
$4,500 per position
Reimbursement for economic development expenditures.
Description
Grant to local communities to reimburse eligible company expenditures not covered by other grants (e.g. property acquisition, new construction).
Eligibility
Only post-contract execution.
Grants for expanding infrastructure needs like roads/utilities.
Description
Grant to local governments for public infrastructure needs for new or expanding companies (e.g. utilities, roads, telecommunications).
Eligibility
Requires local match and PILOT if onsite.
Tax credits for purchasing qualifying industrial machinery.
Description
Credit of 1% for the purchase of qualified industrial machinery.
Credit offsets up to 50% [missing content - 50% of what?]
Any unused credit may be carried forward for up to 25 years.
Eligibility
Applies to:
- Manufacturing equipment
- Warehousing & distribution (greater than or equal to $10M capital investment)
- HQs (headquarters)
- Call centers (IT equipment tied to job tax credits)
- Research & development
Minimum amount awarded in tax credits per job created, up to 25 years.
Description
$4,500 per position.
Offsets up to 50% franchise & excise tax.
Carry forward up to 25 years.
Eligibility
Minimum 25 jobs in 36 months + $500K investment.
Tax exemptions on software, utilities, and equipment purchases.
Description
Exemptions on machinery, utilities, software, etc.
Eligibility
Depends on use (e.g. R&D, HQs, call centers, data centers).
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