Project Incentive Coordination
Jobs Tax Credit
This tax incentive, offered through the Tennessee Department of Economic and Community Development, provides qualified new or expanding businesses in Tennessee a $2,000 credit if the business creates a minimum of 25 new full-time jobs in a year and makes a capital investment of at least $500,000. The credit can be used to offset a firm's franchise and excise tax liability of 33.3 percent per year for a business that creates 25 to 1,000 jobs; 50 percent for 1,000 to 3,000 jobs; 75 percent for 3,000 to 5,000 jobs and 100 percent for more than 5,000 jobs. The credit balance can be carried forward for 15 years if a company is unable to use all of the credit in the first year.
Corporate Excise Tax Credit
One percent of the cost of industrial machinery that has been certified by the Tennessee Department of Revenue, Sales and Use Tax Division, can be taken as an industrial machinery excise tax credit. This credit applies to manufacturing, distribution equipment, computer equipment and telephones for all types of new and expanding companies. Material handling equipment and racking systems for distribution operations also apply when the capital investment exceeds $10 million over three years.
Sales Tax Exemptions
Sales tax exemptions and reductions are available on industrial machinery, energy, fuel and water used in a manufacturing process or processing of products for resale off premises. Raw materials for processing, pollution control equipment for manufacturers, and materials that become a component part of the manufactured product are also sales tax-exempt. Material handling equipment and racking equipment are also sales tax-exempt for distribution companies investing a minimum of $10 million over three years. Credits of 5.5 percent of building materials, equipment, and machinery for headquarters of more than $20 million in construction investment are also available.
Training assistance for new and existing business and industry is available as an incentive by the Tennessee Department of Economic and Community Development when associated with new investment for facilities, equipment and new job hires.
FastTrack staff helps a company plan, develop and implement a customized training program that meets initial training needs with follow-up to ensure each phase of the training program is effective and flexible.
The FastTrack Job Training Assistance program is funded by the state's budgetary process and utilizes only state-appropriated funds for training. FastTrack is the primary source of financial support for new and expanding business and industry training. With the state's network of educational facilities serving as prime delivery agents, blended with the company's staff and other vendors, FastTrack will coordinate directly with the company to develop and implement the necessary skills and knowledge training program.
Training can be both pre-employment and post-employment, including classroom and on-the-job training. Reimbursement of development and instructor cost either by company personnel or selected vendors, including educational institutions, are eligible for support. Travel-related cost for the purpose of training is considered a viable training expense. Training facilities and equipment are contingent upon the project and the need of the local area.
Tennessee Job Skills Program
Tennessee Job Skills (TJS) program is a workforce incentive grant program through the Tennessee Department of Economic and Community Development focused on enhancing employment opportunities and meeting the needs of new and existing industry. Through training, the program shall give priority to the creation and retention of high-wage jobs. Focus is on employers and industries that promote high-skill, high-wage jobs for emerging, in-demand, and high-technology manufacturing occupations.
Training is a parallel component to technological advancement. TJS is a work force incentive grant program designed to assist existing employers in elevating the skills of their employees.
TJS staff helps a company plan, develop, and implement a customized training program that meets the company's initial training needs and follow-up to ensure each phase of the training program is effective and flexible.
Tennessee Industrial Infrastructure Program
This fund, offered through the Tennessee Department of Economic and Community Development, is utilized to offset infrastructure improvement costs, site costs and other infrastructure-related costs such as water and wastewater extensions, transportation extensions, site improvements, and other improvements. The maximum amount available for any one project is $750,000. The amount of a grant is based on a cost-benefit analysis conducted by the Tennessee Department of Economic and Community Development and the infrastructure needs of the site.
The Department of Labor and Workforce Development can provide assistance in the recruitment of qualified job applicants. Recruitment services can be provided and may include accepting and screening applications, testing, and referral of qualified applicants, based upon the company-prepared specifications. Workforce Development also administers the Workforce Investment Act program, which could provide training assistance for those eligible participants.
Additional information on state incentives can be found by clicking here.
TENNESSEE VALLEY AUTHORITY INCENTIVES
Economic Development Loan Fund
The EDLF stimulates job creation and capital investment in the TVA region by assisting new and expanding industrial companies. Depending on job creation and capital investment, loans are made for up to $2 million to purchase fixed assets.
TVA Enhanced Growth Credit
Substantial credits on power bills may be available to companies expanding in the Tennessee Valley. Eligibility is determined by SIC code, type of power used, and kilowatt usage.
- Site evaluations
- Architectural and engineering services
- Land development plans
- Architectural renderings and schematics
- Project reviews
- Analysis for environmental and compliance studies
Economic Research and Analysis
- Economic impact analysis
- Company lists
- Market research and industry reports
- Target industry analysis
- Comparative advantage analysis
- Business opportunities reports
- County profiles
- Minority demographic and economic analysis
- General economic research
Additional information on TVA incentives can be found by clicking here for information about loans and clicking here for information about technical services.
Payment in Lieu of Tax (PILOT)
Projects involving a large capital investment and large numbers of new jobs may qualify for a property tax freeze or reduction (in lieu of tax agreement). These requests are considered on a case-by-case basis by city and county officials, and are based on an analysis of job creation, economic impact, capital investment, and wage rates.
Industrial Revenue Bonds
Sumner County and all of its incorporated cities have Industrial Development Boards that are authorized to issue bonds to finance industrial facilities. Tax-exempt industrial development bonds are available for qualified manufacturing operations.
Commercial Real Estate Database
Forward Sumner is pleased to provide access to a comprehensive listing of available industrial buildings, office buildings, and greenfield sites. This resource is available by clicking here.