Biggins Lacy Shapiro & Company, LLC

Tennessee Economic Development Incentive Programs

GRANTS

FastTrack Infrastructure Program: Provides discretionary grants to local government agencies for public infrastructure improvements that will benefit at least one company. To qualify, a business must create net new full-time jobs and make a capital investment.

FastTrack Economic Development Fund:  Provides discretionary grants to local government agencies to reimburse a business for project-related expenditures that are not covered by grants offered by the FastTrack Job Training Assistance and FastTrack Infrastructure programs. The grant can help offset expenses such as relocation of equipment, temporary office space, capital improvements (such as new building construction and new permanent fixtures) and retrofitting.  To qualify, a business must create net new full-time jobs and make a capital investment.

FastTrack Job Training Assistance Program:  Provides discretionary grants to Tennessee companies to support the training of net new full-time employees. To qualify, a business must create net new full-time jobs and make a capital investment.

TAX CREDITS

Job Tax Credit: Businesses that create at least 25 net new jobs within a 3-year period and make a capital investment of at least $500,000 qualify for a one-time corporate income tax credit of $4,500 per job.  The tax credit can be used to offset up to 50% of franchise and excise (F&E) tax liability in any given year.  Job tax credits are non-refundable and non-transferable, however businesses with inadequate tax liability may carry forward unused credits for up to 15 years.  

Enhanced Job Tax Credit:  Companies that qualify for the Job Tax Credit and are located in Tier 2, 3, & 4Enhancement Counties, may receive an additional incentive called the Enhanced Job Tax Credit. The enhanced credit is equal to $4,500 per job, per year for 3 years for projects located in Tier 2 counties and $4,500 per job, per year for 5 years if a business is located in a Tier 3 or 4 county.  Enhanced credits may be used to offset up to 100% of tax liability in a given tax year, however unused credits cannot be carried forward.

Industrial Machinery Tax Credit: Credit of 1% to 10% for the purchase, third party installation and repair of qualified industrial machinery. The tax credit can be used to offset up to 50% of franchise and excise (F&E) tax liability in any given year.  Industrial machinery credits are non-refundable and non-transferable, however businesses with inadequate tax liability may carry forward unused credits for up to 15 years.  

TAX EXEMPTIONS

Sales Tax Exemptions: Available on industrial machinery, energy, fuel and water used at a manufacturing facility.  In addition, businesses that meet certain capital investment and job creation requirements are entitled to a sales tax exemption on equipment purchased for use at a data center, and warehouse and distribution facility.  

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
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