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High-tech

Data Center Tax Credit   

Tax credit for the purchase of materials related to the construction of a data center
Applies to buildings housing high technology computer systems and related equipment in which the taxpayers had made a minimum capital investment of $250 million and has created 25 new jobs paying at least 150% of the state's average occupational wage. Investments must be made during a 3 year period, but can be extended to 7 years at the discretion of the Commissioner of Economic and Community Development; The purchase of computers, computer systems, computer software and repair parts for a qualified data center are considered purchases of industrial machinery and qualify for a minimum 5% Industrial Machinery Tax Credit against F&E liability. Computers, computer systems, computer software and repair parts used in qualified data centers are classified as industrial machinery and exempt from sales and use taxes. Qualified data centers also pay reduced sales taxes on the purchase of electricity (1.5% vs. the previous rate of 7%).

Created to assist expanding and emerging tech companies with expansion.



Tax credit against franchise and excise taxes for companies involved in producing green technology
Must be a certified green energy supply chain manufacturer or affiliated company. "Certified green energy supply chain manufacturer? means any manufacturer that has made during the investment period a required capital investment in excess of $250 million in constructing, expanding, or remodeling a facility that is certified to be a facility engaged in manufacturing a product that is necessary for the production of green energy.

Green Energy Tax Credit was developed as a part of a comprehensive strategy to encourage green energy projects to locate in Tennessee.



Sales and Use Tax Credit for Emerging Industries   
A credit equal to 6.5% of the 7% state sales and use taxes available to emerging industries
Tennessee law makes a sales and use tax credit available to taxpayers that establish a qualified facility to support an emerging industry in Tennessee with a minimum capital investment of $100 million and the creation of at least 50 new full-time jobs paying 150% of Tennessee's average occupational wage. The credit is equal to 6.5% of the 7% state sales and use tax paid to Tennessee on the sale or use of qualified tangible personal property.

Created to promote the development of emerging, high-tech, and clean energy industries in Tennessee.



Tennessee Job Skills   
A special training reimbursement program for emerging, high-demand, and technology focused businesses
Similar to FJTAP, but with a focus on employers and industries that create high-skill, high-wage jobs in emerging, high-demand and technology focused sectors of the economy. Training staff work with companies to develop a unique, flexible, comprehensive training plans that meet the company's initial training needs and follow up to ensure each phase of the program meets the company's needs. Companies track costs and apply to the State for reimbursement. Reimbursement rates depend on the level of training and the types of instructors utilized.

Created to assist companies in hiring new employees.