Sales and Use Tax Credit for Emerging Clean Energy Industry (Tennessee)
Last modified on February 12, 2015.
Financial Incentive Program
|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|
|Energy Category||Renewable Energy Incentive Programs|
|Amount||Tax rate reduced to 0.5%|
|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|
|References||DSIREDatabase of State Incentives for Renewables and Efficiency|
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.
|Contact Name||Department of Revenue Information|
|Department||Tennessee Department of Revenue|
|Address||Andrew Jackson Building, Room 1200|
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.