Job Tax Credit and Super Credit (Tennessee)

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Last modified on February 12, 2015.

EZFeed Policy

Place Tennessee


   
Applies to States or Provinces Tennessee
Name Job Tax Credit and Super Credit (Tennessee)
Policy Category Financial Incentive
Policy Type Corporate Tax Incentive, Personal Tax Incentives
Affected Technologies Biomass/Biogas, Coal with CCS, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric, Hydroelectric (Small), Natural Gas, Nuclear, Solar Photovoltaics, Wind energy
Active Policy Yes

Implementing Sector State/Province











Funding Source Tennessee Department of Revenue
















Primary Website http://www.tn.gov/ecd/BD_business_tax_credit.html#jobs, http://www.tn.gov/ecd/BD_business_tax_credit.html#super
Applicable Jurisdiction Statewide


Last Review 2014-09-15


Information Source www.tn.gov, http://www.state.tn.us/revenue/taxguides/bustaxguide.pdf


Summary

The Job Tax Credit Program is a tax credit program for companies investing at least $500,000 and creating 25 new jobs in a 12-month period. The company creating these jobs can claim a Job Tax Credit of $4,500 per job to offset up to 50% of the combined F&E tax. Any unused Job Tax Credit may be carried forward for up to 15 years. The approval process for the Job Tax Credit requires a Job Tax Credit Business Plan be filed with the Department of Revenue prior to taking the credit.

A qualified business locating or expanding in a Tier 2 county may take 3 years to create 25 jobs, and business locating or expanding in a Tier 3 county may take 5 years to create 25 jobs. The credit may not be taken until the year the 25 job threshold is met unless the business has requested and received a waiver from the Commissioner of Economic and Community Development and Commissioner of Revenue.

The Jobs Tax Super Credit is designed to incentivize larger, more capital-intensive investments. Tennessee has created a Super Credit that applies to those qualified businesses investing capital of $100 million or more and creating a minimum of 100 jobs paying at least 100% of Tennessee's average occupational wage or investing $10 million in a qualified headquarters facility with the creation of at least 100 new headquarters jobs paying 150% of the average occupational wage. The average occupational wage for 2010 is $36,542, and the average occupational wage for 2011 is $37,360.

These credits can be used to offset up to 100% of the company's F&E (franchise and excise) tax liability each year for 3 to 20 years starting the first tax year after the job creation and capital investment thresholds have been met



Policy Contact

Contact Name Bill Hagerty
Department Tennessee Department of Economic and Community Development
Division Comissioner
Address Eleventh Floor, 312 Rosa L. Parks Avenue, Nashville, TN, 37243



Phone 615-741-1888


Email Bill.Hagerty@tn.gov

Contact Name Bestsy Van Dam
Department Tennesee Department of Economic and Community Development
Division Executive's Assistant
Address Eleventh Floor, 312 Rosa L. Parks Avenue, Nashville, TN, 37243



Phone 615-741-8915


Email Betsy.Vandam@tn.gov

     

Authorities (Please contact the if there are any file problems.)

Authority 1: Tenn. Code 67-4
Date Effective 2010



















References