Tennessee Business Advantage

Business Climate
A Governor Who Gets It: Phil Bredesen

Harvard-educated physicist with a successful track record as founder and CEO of a NYSE-listed health care company.

Mayor of Nashville from 1991 to 1999, credited with spearheading a citywide renaissance.

Economic developer with a proven track record, responsible for bringing such high-profile companies as Sprint PCS, Dell, HCA and Hewlett-Packard to Nashville during his tenure as mayor.

Committed to maintaining and improving Tennessee's stature as a world-class business location.

A Legislature That Means Business

Tennessee's General Assembly historically has demonstrated an overriding philosophy that favors business and development.

A balanced budget is mandated by the state constitution.

Good Companies, Good Company

Tennessee is headquarters to six Fortune 500 companies.

Statewide, a spirit of entrepreneurship thrives.

Diversified economy with emphasis on manufacturing.

Chambers of commerce and development boards statewide cooperate regularly to provide businesses with the best possible environment for expansion.

We're Here For You

Tennessee's Department of Economic & Community Development provides research on available buildings, facilities, industrial properties, demographics, community and county data profiles, labor statistics, wage surveys.

Technical assistance is available in energy, environmental regulations, transportation, licensure, site location and export development.

Tennessee Tax-Based Incentives
Franchise Tax

Tax on the greater of net worth or book value of property owned or used in Tennessee.

Tax rate is 25¢ per $100.

Finished goods inventory in excess of $30 million may be excluded.

Pollution control equipment is exempt.

Property under construction and not being utilized is not included.

Property rented from local industrial development boards may be valued by capitalizing it on company books.

Excise Tax

Tax is based on the net earnings of the company derived from the business in Tennessee.

Tax rate is 6.5%.

1% credit on the purchase price of qualified industrial machinery and unused credit carried forward for 15 years.

1% credit on telephone equipment and computer equipment purchased under the required capital investment for jobs tax credit.

All capital losses are claimed in the year incurred.

Net operating losses can be carried forward for 15 years.

Three-factor apportionment formula: property, payroll and sales.

Additional credits or exclusions may be available.

Tennessee does not have a throwback provision for sales outside the state.

page: 1 2