Reductions in Corporate Excise Tax
- Industrial machinery tax credit of 1% of the purchase price.
- Net operating loss carries forward 15 years.
- All capital losses can be claimed in the year incurred.
Reductions in Corporate Franchise Tax
- Jobs tax credit of $4,500 per new full-time employee.
- Property under construction, not being utilized by the corporation, is excluded from the franchise tax.
- Property rented from an industrial development board may be capitalized on the corporate books.
- Pollution control equipment is exempt from the franchise tax.
Reduction in Sales Tax
- No sales tax on industrial machinery (machinery that is necessary and primarily used for the fabrication of a product).
- No sales tax on repairs to industrial machinery.
- No sales tax on pollution control equipment.
- Reduced sales tax rates for manufacturers' use of energy fuel and water at manufacturing site; tax-exempt if they have direct contact with product during manufacturing process.
State Property Tax
- There is no state property tax
- There is no property tax on goods-in-process
- There is no property tax on inventories of finished goods
- There is no property tax on goods-in-transit (Freeport)
Personal Income Tax
There is no state or city personal income tax on wages or salaries; however, certain dividend and interest income received by a Tennessee resident is taxable.
Additional Tax Credits
Targeted Jobs Tax Credit of up to $2,400 per employee for hiring from targeted groups of
economically disadvantaged youth and adults.