| |
State Incentives
| Excise Tax |
•Receive 1% excise tax credit
for:
•the purchase, installation and/or
repair of qualified industrial machinery.
•the purchase of qualified equipment
associated with the required $500,000
capital investment by a distribution
or warehouse facility.
•the purchase of computers, computer
networks, software, computer systems,
telephone systems and any peripheral
devices purchased to reach the "required
capital investment" to qualify
for the jobs tax credit.
•Net operating loss may carry forward 15 years.
•All capital losses may be claimed the year incurred. |
| Franchise Tax |
•Tax Credit of $2,000 (or $4,500 in special
enhancement counties) per new full-time employee:
•in businesses that meet requirements
of a minimum 25 new full-time jobs
and additional capital investment
of $500,000 and offer a minimal health
care plan.
•for new jobs in the future resulting
in a net increase in jobs.
•No franchise tax on:
•finished goods inventory in excess
of $30 million for fiscal year beginning
July 15, 1998.
•property under construction, not
being utilized by the business.
•pollution control equipment.
•Property rented from an industrial development board
may be capitalized on the business books.
•For companies that increase Tennessee investment while
also doing business in other states, Tennessee offers a double,
weighted sales apportionment formula for franchise and excise
taxes (this means property, payroll and sales are all
taxed, but they are taxed in fourths, not thirds; property
and payroll have one-fourth each and sales has two-fourths.).
•The jobs tax credit can be applied to both the franchise
and excise tax. The percentage of franchise and excise tax
liability offset allowed ranges from 33 1/3% to 100% for total
employment in Tennessee, ranging from less than 1,000 to 5,000
or more. |
| Personal Income Tax |
•Consistently one of the lowest per capita
taxed states in the nation. |
| Property Tax |
•No property tax on:
•goods-in-process.
•finished goods inventories in hands
of manufacturers.
•inventories of merchandise for sale.
•goods-in-transit (free port).
•pollution control equipment required
for compliance with federal, state
or local environmental protection
laws.
•Attractive depreciation schedules. |
| Sales and Use Tax |
•No sales tax on:
•purchases, installation and repairs
of qualified industrial machinery.
•purchases of material handling and
racking equipment associated with
the required capital investment of
$10 million by a distribution or warehouse
facility.
•raw materials for processing.
•pollution control equipment of manufacturers.
•reduced sales tax for manufacturers'
use of energy fuel and water; tax-exempt
if used directly in the manufacturing
process and separately metered.
•any materials that become a component
part of the finished product.
•containers, labels and packaging
materials if they are sold with or
accompany the product at no additional
charge.
•Reduced sales tax rates for manufacturer's use of energy
fuel and water.
•Credit of 5.5% for sales and use taxes paid on building
materials, machinery and equipment used in new or expanded
regional, national or international headquarters; requires
capital investment of $50 million.
•Refund taxes paid on goods and services by motion picture
production companies filming or producing in Tennessee; requires
expenditures of $500,000. |
| Other Tax Credits |
•Day Care:
•Credit against franchise and excise
taxes for businesses that establish
a day care center for employee's children. |
|
|
