Incentives & Grants - Tennessee Department of Economic and Community Development-k85彩乐园网站

Incentives for Growth

Experience incentives designed specifically with your business in mind. Lower operating costs reduce capital outlay and minimize risk: we know what it takes to earn your business. In Tennessee, we're fostering economic growth with flexible incentives and grants geared toward your investment.

If there is one thing we’ve learned over the years, we’re in business because you’re in business.

Long-term growth meets increased profitability with competitive grants for workforce training, public infrastructure and economic development. Our commitment doesn’t stop there. We offer incentives to help make your decision an easy one.

Grants

FastTrack Infrastructure Program

Grants made to local governing bodies for public infrastructure improvements must be for specific infrastructure projects benefiting one or more companies committed to creating new jobs and/or making new capital investments
Covers infrastructure such as rail, public roadway, port, airport, site, water, sewer, gas and telecommunication improvements
Requires local matching funds based on a community’s ability to pay
Requires a Payment In Lieu Of Tax (PILOT) for at least 5 years on real property

FastTrack Job Training Assistance Program

Grant assisting new or expanding companies with funding to support the training of net new full-time employees

FastTrack Economic Development Fund

Has the ability to offset costs companies incur when expanding or locating a business operation in Tennessee with reimbursable grants made to local governing bodies
Can offset the costs in a variety of ways, including retrofitting building, acquiring real property, relocation of equipment, and other expenditures not otherwise eligible under the FastTrack Infrastructure Program or Job Training Assistance Program
Only used in exceptional cases where the impact of the company on a given community is significant

FastTrack eligibility and funding levels are determined by:

Number of new full-time jobs
Weighted average wages of new full-time jobs
Amount of company investment
Types of skills and knowledge that must be obtained
Location of the project

Bonus Incentive:

At-Risk County: 35% premium to projects that locate in a county defined by the Appalachian Regional Commission as “at-risk”
Distressed County: 50% premium to projects that locate in a county defined by the Appalachian Regional Commission as “distressed”

In order to receive either premium, the project must provide an average starting wage that meets or exceeds the median county wage. TNECD reserves the discretion to approve or deny the premium based on the facts and circumstances of the project.

Incentive Opportunities Across Tennessee

Tax Incentive Tiers At-Risk & Distressed Counties

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Tax Credits

Competitive tax incentives make Tennessee a smart choice for doing business. We have one of the country’s lowest per capita tax burdens, no income tax, and no state property tax.

Tax credits include those based on the number of jobs created, amount invested, type of business and location. We also have credits for qualified industrial machinery purchases and a series of sales and use tax exemptions.

Job Tax Credit	Credit of $4,500 per job to offset up to 50% of franchise and excise (F&E) taxes in any given year with a carry forward for up to 15 years.	Create at least 25 net new full-time positions within a 36 month period and invest at least $500,000 in a qualified business enterprise.
	Community Resurgence: Credit of $2,500 per each position.	Create 10 net new full-time jobs each paying the state’s average occupational wage and also be located in a census tract where poverty rate exceeds 30%.
Enhanced Job Tax Credit	Allows an additional annual credit for locations/expansions in designated Tier 2, Tier 3, and Tier 4 Enhancement Counties. Enhanced JTC can offset up to 100% of F&E liability.
	Tier 2: 3 year annual credit at $4,500 per job with no carry forward.	Create at least 25 net new full-time positions within a 36 month period and invest at least $500,000 in a qualified business enterprise.
	Tier 3: 5 year annual credit at $4,500 per job with no carry forward.	Create at least 20 net new full-time positions within 60 month period and invest at least $500,000 in a qualified business enterprise
	Tier 4: 5 year annual credit at $4,500 per job with no carry forward.	Create at least 10 net new full-time positions within 60 month period and invest at least $500,000 in a qualified business enterprise.
Industrial Machinery Tax Credit	Credit of 1% to 10% for the purchase, third party installation and repair of qualified industrial machinery.	Manufacturing: includes purchases for machinery; apparatus and equipment with parts; appurtenances and accessories; repair parts and labor.
		Warehousing and distribution: includes material handling equipment and racking systems with a minimum $10M capital investment within 36 months.
		Headquarters, call centers: includes computer; network; software or peripheral computer devices, purchased in making required capital investment for job tax credit.
Sales and Use Tax Exemptions	Manufacturing: sales tax exemption for industrial machinery and reduced sales tax rate for utilities at qualified manufacturing facilities.	Exemptions include industrial machinery, repair parts and industrial supplies used in the manufacturing process. Reductions include: 0-1.5% tax on water depending on use and 0-1.5% on gas, electricity and various energy sources depending on use.
	Headquarters: State sales tax credit for qualified personal property purchased for a qualified headquarters facility.	HQs receive a sales tax credit for 6.5% for qualified personal property directly related to the new full-time job creation.
	Warehouse/Distribution: Sales tax exemption for material handling and racking systems purchased for a qualified warehouse or distribution center.	Investment of $10M or more, including the purchase of new equipment, made during a 3 year period.
	Call Centers: Tax exemption on any sales of interstate telecommunication and international telecommunication services sold to a business for use in the operation of one or more qualified call centers.	Must have at least 250 jobs engaged primarily in call center activities.
	Data Centers: Sales tax exemption for certain hardware and software purchased for a qualified data center.	Minimum capital investment of $100M and 15 new full-time positions paying at least 150% of the state’s avg. occupational wage; investment must be made during a 3 yr. period.
	Research and Development: Sales tax exemption on certain equipment used in research and development.	Equipment must be used necessary to and primarily for research and development purposes.

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Request More Info

For more information regarding incentives in Tennessee, please download the Incentives Fact Sheet.

Jamie Stitt

Tennessee Department of Economic and Community Development

Common Search Terms

Incentives and Grants

Incentives for Growth

Experience incentives designed specifically with your business in mind. Lower operating costs reduce capital outlay and minimize risk: we know what it takes to earn your business. In Tennessee, we're fostering economic growth with flexible incentives and grants geared toward your investment.

Grants

FastTrack Infrastructure Program

FastTrack Job Training Assistance Program

FastTrack Economic Development Fund

FastTrack eligibility and funding levels are determined by:

Bonus Incentive:

Incentive Opportunities Across Tennessee

Washington County Industrial Park Parcel 31 – Pad Ready Site

Washington County Industrial Park – Parcel 112.05 – Pad Ready Site

Walker East Industrial Site

Tullahoma Airport Business Park

Timberlake Industrial Site

Technology Park II at Holston Army Ammunition Plant

Team Lawrence Commerce Park – West

Team Lawrence Commerce Park – East

Stewart-Houston Industrial Park

State Road 111 Industrial Park

Shipps Bend Industrial Site

Runway Centre Industrial Park

Rialto Industrial Site

PowerCom Industrial Center

Pellissippi Corporate Center Lots 11 and 12

Partnership Park II

Northwest Tennessee Regional Industrial Center

North Etowah Industrial Park

Mountain View Industrial Park

Middle Tennessee I-24 Industrial Site

Memphis Regional Megasite

McKenzie Airport Industrial Park

Manchester Industrial Park

Macon-Lafayette Industrial Park

Lawrenceburg Industrial Park

Lake County Industrial Site at Cates Landing

Jones Road Site

Jefferson City Industrial Complex

Interchange Business Park

I-40 Advantage Industrial Park Site

Huntingdon Industrial Park South

Horizon Center, Development Area 6

Highway 223 East Site

Hardin Industrial Complex – Phase II

Halls Industrial Site

Gibson County Industrial Park – North Site

Gibson County Industrial Park – South Site

Gallatin Industrial Center, Phase II

Fayetteville – Lincoln County Industrial Park – Lot 4

EDGE Property at Presidents Island

Eastbridge Business Park – Lots 4, 5 & 6

East Tennessee Progress Center – Lot 3

East Tennessee Progress Center – Lot 12

Dyersburg Rail Site

Dyer Industrial Park

Dresden Pad Ready Site

Dan Speer Industrial Park South, Lot 5

Crockett County Industrial – Friendship/Bivens Site

Commerce Park Interstate Site

Columbia Tennessee Rail Site

Coffee County Joint Industrial Park

Clinton – I-75 Industrial Park Lot 2R

Clarksville-Montgomery County Corporate Business Park South

Cherry Glen Industrial Park

Cardiff Valley Road Site

Canterbury Site

Bristol Business Park

Bolivar Industrial Park

Benton County Industrial Park – Bridges Site #1

American Way Site

Airport Industrial Park – Site B

Airport Industrial Park – Site A

Aerotropolis Logistics Park Site

Aerospace Park 1

Adamsville/McNairy North Industrial Park

75 Regional Commerce Park

Wolf River (Rossville) Airport