Sales and Use Tax Credit for Emerging Clean Energy Industry (Tennessee)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Tennessee

Name Sales and Use Tax Credit for Emerging Clean Energy Industry
Incentive Type Industry Recruitment/Support
Applicable Sector Commercial, Industrial
Eligible Technologies Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Hydrogen, Solar Pool Heating, Anaerobic Digestion, Small Hydroelectric, Other Distributed Generation Technologies
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Tax rate reduced to 0.5%







Start Date 2009-07-01

















Terms Taxpayer must make 100 million investment (minimum) and create 50 full-time jobs at 150% rate of Tennessee's average occupational wage.
Program Administrator Tennessee Department of Revenue
Website http://www.tn.gov/revenue/tntaxes/salesanduse.shtml
Date added to DSIRE 2009-07-09
Last DSIRE Review 2014-08-12



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

In June 2009, Tennessee enacted the Tennessee Clean Energy Future Act of 2009 and expanded its Sales and Use Tax Credit for Emerging Industries to manufacturers of clean energy technologies on the sale or use of qualified tangible personal property. The Sales and Use Tax is reduced to 0.5% for clean energy technology manufacturers. Clean energy technologies are defined as those that result in energy efficiency and technologies that use biomass, geothermal, hydrogen, hydropower, landfill, solar, and wind to generate energy. Qualifying manufacturers must make a minimum $100 million investment, create and maintain 50 full-time jobs for 10 years that pay 150% above the Tennessee occupational average wage, and the taxpayer must be subject to the franchise and excise taxes.

The taxpayer must submit an application to the Department of Revenue to be certified as a qualified facility. Both the Department of Revenue and Department of Economic and Community Development must determine that the allowance of the credit is in the best interests of the state. Once approved as a qualified facility, the taxpayer must submit a claim for credit and documentation that the sales and use tax has been paid on qualified tangible property. Qualified property includes building materials, machinery, and equipment used in the qualified facility and purchased (or leased) during the investment period. The Department of Revenue will then provide a determination to the taxpayer on the amount and how to take the credit.

For additional information, review the Sales and Use Tax Guide found at the Department of Revenue website or contact them directly.


Incentive Contact

Contact Name Department of Revenue Information
Department Tennessee Department of Revenue

Address Andrew Jackson Building, Room 1200

Place Nashville, Tennessee
Zip/Postal Code 37242-1099
Phone (615) 741-2461


Email TN.Revenue@tn.gov
Website http://www.tennessee.gov/revenue/
     
     

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

Authority 1: Tenn. Code § 67-6-232




Authority 2 Tenn. Code § 67-6-232
Date Effective 2005 (subsequently amended)



















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"