SPOTLIGHT PROGRAMS

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. The program also requires local matching funds based on a community’s ability to pay.‍

‍

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.

‍

Bonus incentives are available at a 35% premium to projects that locate in a county defined by the Appalachian Regional Commission as “at-risk.” A 50% premium is given to projects that locate in a county defined by the Appalachian Regional Commission as “distressed.”

‍

‍

‍

TAX CREDITS

Job Tax Credit: Businesses that 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. Job requirements vary by county tier.

• Tier 1 or 2 - 25 jobs
• Tier 3 - 20 jobs
• Tier 4 - 10 jobs

‍

Enhanced Job Tax Credit: Companies that qualify for the Job Tax Credit and are located in Tier 2 or 3 Enhancement 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.

‍

Super Job Tax Credit: A $5,000 per job tax credit for either companies making a capital investment of $100 million or more and creating a minimum of 100 new jobs paying at least 100% of Tennessee’s average occupational wage or companies establishing or expanding a regional, national, or international headquarters with a capital investment of $10 million or more and creating 100 HQ jobs paying at least 150% of Tennessee’s average occupational wage.‍

‍

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.

‍

‍Headquarters Tax Credit: This program requires a minimum capital investment of $10 million and creates a minimum of 100 new jobs. The credit is for all state sales and use taxes paid to the state except for 0.5% on the sales and use of building materials, machinery, equipment, furniture, and fixtures.

‍

‍

‍

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 headquarters, R&D center, call center, data center, and warehouse/distribution facility.

‍

‍

‍

JOB TRAINING

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.

‍

‍

‍

Last Updated: May 2023