TENNESSEE INCENTIVES AT A GLANCE

Please contact TNECD for a complete list of eligibility requirements and for more information

      BENEFIT      ELIGIBILITY (not comprehensive)
FastTrack Economic
Development Fund*
Grant provided to local communities
to reimburse a company for eligible
expenditures not covered by
infrastructure  or job training grants.
The grant can help offset expenses
such as relocation, temporary office
space, capital improvements and
 retrofitting.
Only used in exceptional cases
where a company's impact,
such as net new full-time jobs
and capital investment,
in a community is significant.
These funds are available subject
to terms of the Accountability
Agreement executed by the state,
community and company. TNECD
is not able to provide incentives
prior to the execution and approval
of a contract.
FastTrack Job Training
Assistance Program*

Grant to provide funding to support the
training of net new full-time employees
for new and expanding companies.

Funding levels are based on the
number of net new full-time jobs
created, amount of capital
invested, wages of new
employees and the types of skill
and knowledge levels
required. TNECD is not able to
provide training incentives for
any positions filled prior to an
execution and approval of a
contract.
FastTrack Infrastructure
Development Program*      
Grant provided to local governments for
public infrastructure needs for new and
expanding companies. TNECD will work
with the local officials to identify eligible
needs for a project, such as water,
sewer,rail, gas, electric, roadway,
telecommunications or other site
 improvements.  
Must be for public infrastructure
improvements benefiting a
specific company generating net
new full-time jobs and capital
investment; requires local
matching funds. For onsite
improvements, the community
must provide a PILOT on the
real property investment for
at least 5 years.TNECD is not
able to provide incentives prior
to the execution and approval
of a contract.                                         

TAX CREDITS AND 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                  
of up to 15 years.
Create at least 25 net new full-
time jobs within a 36 month
period and invest at least
$550,000 in a qualified business
enterprise.
 Enhanced Job Tax Credit* Allows an additional annual credit
for locations/expansions in designated
Tier 2 and Tier 3 Enhancement Counties.
Enhanced JTC can offset
up to 100% of F&E liability.
Create at least 25 net new full-
time jobs within a 36 month
period and invest at least
$500,000 in a qualified business
enterprise.
  Tier 2: 3 year annual credit at $4,500 per
job with no carry forward.
 
  Tier 3: 5 year annual credit at $4,500 per
job with no carry forward.
 
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.                                                  

               BENEFIT ELIGIBILITY (not comprehensive)
Sales and Use Tax              
Exemptions, cont.*
  
Headquarters: State sales tax credit         
for qualified personal property
purchased for a qualified
headquarters facility.
Investment period begins 1 yr. prior       
to construction/expansion and ends
1 yr. after construction/expansion
has concluded, but can be extended
to 6 yrs. with permission from the
state. HQs receive a non-expiring
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 $250M and 25 new full-
time jobs paying at least
150% of the state's avg.
occupational wage; investment
must be made during a 3 yr.
period, but can be extended to
5 yrs. for investments under $1B
or 7 yrs. for investments
exceeding $1B with the state's
permission.

OTHER

 Export Assistance  TNECD offers Tennessee companies valuable export services for up to two       
global markets per year at no cost. The State's offices in the United Kingdom,      
European Union, Mexico and China provide: 
- Market Checks
- Market Strategy Reports
- Trade and Travel Assistance
- Market Entry Recommendations and Assistance
- Business Partner and Distributor Searches
Applicant Recruitment and 
Screening (TDOT)
Free assistance with the recruitment and screening of job applicants based on
a company's specific job requirements. More than 70,000 potential employees   
in statewide database.
State and Industrial Access
Program (TDOT)
Funds the construction of roadways to support industrial areas based on project
type, economic benefit, physical constraints and available funding.

*Definition of net new full-time job: 37 1/2 hours a week, 12 months and health coverage offered.