Since Governor Haslam took office in 2010, one of his highest priorities has been the creation of higher-skilled, better-paying jobs for Tennesseans. The Department of Economic and Community Development has spearheaded that effort from the beginning. In the last year, we've been called the nation's most competitive state for business, the third-best for economic development and the most improved state for development. The stage is set for success in Tennessee.
For comprehensive 2012 Tennessee incentive information, click here TN 2012 Incentives at a Glance
The FastTrack Infrastructure Development Program (FIDP) funds may be used for infrastructure improvements. Funds may not be used for "speculative" projects but are restricted to situations where there is a commitment by certain private sector businesses to locate or expand in the state and to create or retain jobs for Tennesseans.
Activities funded under the program will be limited to those services normally provided by local governments and their implementing agencies to businesses which are locating, expanding, or operating in Tennessee. FIDP funding is provided for, but not limited to, the following activities; water systems, wastewater systems, transportation systems, site improvements, technology systems and other improvements to the physical infrastructure required for the location or expansion of a business which creates jobs.
The FastTrack Job Training Assistance Program (FJTAP) is available to both new and expanding businesses.
FJTAP staff assists each individual company to develop customized training plans and to provide funding for components of that training. Eligibility for FJTAP support and levels of funding for training assistance are determined by:
A potentially faster program for reimbursement of training costs, companies may seek reimbursement from the state once a job creation commitment and cost-per-job is established.
Similar to FJTAP, but with a focus on employers and industries which create high skill, high wage jobs in emerging, high-demand and technology focused sectors of the economy. Reimbursement rates depend on the level of training and the types of instructors utilized.
|Jobs Created||Amount of Credit
|| Full-time TN Jobs
If companies can demonstrate a strong growth potential and commit to creating jobs which pay above the county's average occupational wage, the state may waive the threshold of 25 new jobs created in order to qualify for the Jobs Tax Credit.
Super Credits are available at the following levels:
|Capital Investment||Jobs Created||Size of Credit per job, per year||Years Available|
*Projects qualifying in this category must create jobs paying 150% of the state's average occupational wage.
Tennessee extends certain tax credits to qualified suppliers located within the footprint (footprint determined on a per project basis) of a project meeting the $1 billion investment threshold and creating 1,000 or more jobs. A qualified supplier locating within the determined footprint of such a project will qualify for a Jobs Tax Super Credit equal to $5,000 per job with a 15 year carry-forward, plus an additional $5,000 per job each year for six years.
||Percentage of Credit
|Less than $100,000,000
If a company obtains a certificate from the Tennessee Department of Environment and Conservation certifying that the company's purchase of pollution control equipment is mandated by the state, federal or local law and the equipment will result in the reduction of pollution in the water or air or the elimination of hazardous wastes, the equipment can be taxed at a salvage value for the purposes of calculating tangible personal property tax.
The certificate will also exempt the equipment from sales and use tax and exclude it from calculation of a company's franchise tax liability.
The City of Oak Ridge, in conjunction with Anderson and Roane Counties, offers a payment-in-lieu-of-tax (PILOT) incentive that reduces or freezes both real and personal property tax liability for companies meeting certain criteria.
The PILOT incentive is based on job creation, capital investment, wage rate and location of a given project. The incentive is based on a point system, where more points equates to a greater incentive. Bonus points are awarded for companies projecting that a certain percentage of new hires live in Oak Ridge.
Extensive back-up documentation is available regarding the PILOT incentive, including policies and procedures, point criteria spreadsheet, sample MOU and application.
The City of Oak Ridge provides infrastructure assistance to companies making a sizeable investment in the community, based on various criteria. Infrastructure assistance may include building or upgrading electrical capacity, water lines, sewer lines or roadway improvements. Also, the City may assist in providing the local match required by some of the state and federal grant programs.
For projects of considerable size, the City of Oak Ridge will provide a dedicated employee from the Community Development Department to fast track all permitting and licensing in order to expedite the process however possible. The City also is willing to discuss waving or discounting the cost of permit fees.