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Startup and Relocation

Commercial Office Grant Program for Tenant Improvements   

Offers eligible tenants matching grants for up to 50% of the cost of tenant improvements
The property or lease space must be located within the Central Business Improvement District; The Tenant must be classified as and determined as being an office tenant with an office use and with employees who work within the leased premises or within the CBID; The Tenant must employ at least three (3) full-time employees/equivalents (FTEs) at the eligible location; The Tenant must apply prior to entering into a lease; The Tenant’s current lease (if applicable) must be due to expire within 12 months of the application date; and, The Tenant must sign a lease that includes a term of at least five (5) years. *Note: Retail tenants are ineligible for the Program.

This program is designed to stabilize and strengthen the Downtown office market by increasing the number of full-time employees/equivalents within the area.




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.




Extends the term of the PILOT program for those who hire minority employees or contractors
All PILOT companies must file a Diversity Plan with the industrial development board, but those which meet or exceed all of the goals of the Diversity Plan may extend the PILOT by one or two years at the discretion of the Industrial Development Board.

Created to encourage the support and inclusion of minority, women, and locally owned small businesses in the economic development of the local community.




Downtown Storefront Improvement Grant   
The Storefront Improvement Grant provides businesses in the Central Business Improvement District (CBID) with financial assistance in the procurement of façade upgrades that will enhance the appearance and functionality of business storefronts
Limited to businesses that occupy first-floor space with an active street presence and maintain regular daily business hours. The grant can only be used for exterior improvements and approved accessories that are visible from the public right-of-way.

This matching grant is designed to create more attractive, inviting Downtown storefronts in order to improve the public realm and pedestrian experience Downtown.



Economic Development Funds   
Offers below-market-rate financing for capital-intensive industrial and nonprofit construction and renovation projects
The maximum loan amount varies according to the type of project. In most instances, TVA funds should be used for the acquisition of fixed assets. Loans are typically below market rate, with specific rates to be determined on a case-by-case basis after consideration of the loan evaluation criteria. Program guidelines require that each TVA loan dollar leverage additional funding from other sources. The loan funds are primarily available to manufacturing companies and local nonprofit economic development entities. Loans can be used to fund the construction of new manufacturing facilities, expansion of existing facilities, and development of publicly owned industrial sites or buildings.

Established to stimulate economic development and leverage capital investment in the TVA power service area.




Provides below market rate loans to help implement projects that reduce energy use, improve cash flow and provide a new opportunity for growth
Financing is available for up to 100 percent of the costs for installing energy efficient technology, energy retrofits and renewable energy systems that will help them reduce energy consumption. Loans are offered up to 5 million dollars. Eligible projects include: Lighting, HVAC, Building Retrofits, Industrial Systems, Co-Generation, and Renewable Energy/Solar Projects.

Created to help businesses and industries become more energy efficient, so that they may increase their competitiveness and strengthen Tennessee’s economy.




Reimburses up to 100% of eligible job training expenses for new or expanding companies, and assists with development of training plans
This incentive is available to both new and expanding industry and begins with a company developing a training plan including the number of people to be hired, types of skills required and types of training needed. The plan is developed in conjunction with the FastTrack staff and is designed to be customizable and flexible. Companies will track costs associated with implementation of the training program, then submit to the state for reimbursement. Job training assistance can include either traditional or job based training reimbursement.

Created to assist companies in training new employees.




Headquarters Relocation Expense Credit   
Tax credit against expenses incurred in relocating a headquarters
Companies establishing a qualified headquarters facility may qualify for credits against their franchise and excise tax liability based on the amount of qualified relocation expenses incurred in the establishment of a headquarters facility. This is a fully refundable tax credit. Credits range from $10,000 to $100,000 per position.

Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.




Integrated Supplier and Integrated Customer Tax Credit   
Extends certain tax credits to businesses qualified as an "integrated supplier" or "integrated customer"
Must be located within the footprint of a project meeting the $1 billion investment threshold and creating 500 or more occupational wage jobs. An integrated supplier or integrated customer locating within the footprint of such a project will qualify for a Job Tax Super Credit equal to $5,000 per qualified job with a 15 year carry-forward, plus an additional $5,000 per job each year for 6 years. The Integrated Supplier Tax Credit applies regardless of capital investment or number of jobs created.

The purpose of the Integrated Supplier and Integrated Customer Tax Credit is to expand the impact of large "anchor" projects by encouraging co-location of suppliers and customers.


 
Allows headquarters to convert unused net operating losses (NOL) to a credit against franchise and excise tax liability
Companies with a regional, national or international qualified headquarters facility in Tennessee may, with approval from the Commissioner of Revenue and the Commissioner of Economic and Community Development, convert unused net operating losses (NOL) to a credit against franchise and excise tax liability. The NOL credit is available only if the company is unable to use the NOL to offset net income during the current tax year.

Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.

 


WIN contracts with businesses in the public, private non-profit, and private sectors to provide On-the-Job Training (OJT) to eligible WIN participants; Depending upon the details of the agreement, businesses may be reimbursed up to 50% of the trainee’s wage during the training period
Participation requirements are as follows: 1) The job seeker must be eligible for training through the Workforce Investment Act, i.e. either unemployed or underemployed (defined as not earning a self-sufficiency wage of $15 or more per hour); 2) The employer must be willing to provide OJT participants with continued long-term, full-time employment (with wages, benefits, and working conditions that are equal to those provided to regular employees who have worked a similar length of time and are doing the same type of work); 3) An OJT contract must be limited to the period of time required for a participant to become proficient in the occupation for which the training is being provided. In determining the appropriate length of the contract, consideration should be given to the skill requirements of the occupation, the academic and occupational skill level of the participant, prior work experience, and the participant’s individual employment plan.

Developed so that employers can remain competitive and the State of Tennessee can produce viable, progressive businesses.

 



Tax abatement of up to 90% of city personal and property taxes and 75% of county personal and property taxes for a maximum of 15 years
Amount of abatement is determined by capital investment, number of new jobs, average wage of new jobs, location of project, diversity plan, environmental plan, and industry. To be considered, companies must have a minimum capital investment of $1 million and hire add at least 15 new jobs at an average salary of $10 or more per hour. Retention PILOTs require a minimum capital investment of $10 million and the creation of at least 100 new jobs.

Created to alleviate the burden of start-up and relocation expenditures.





Financial incentive that freezes property taxes at the predevelopment level for a predetermined period of time
The PILOT Program is offered for redevelopment projects within the Memphis Central Business Improvement District (CBID) which is bounded by Crump Boulevard on the south, Danny Thomas Boulevard on the east, the Wolf River on the north and the Mississippi River on the west. The CBID extends through the Medical Center, which is bounded by Linden Avenue on the south, Watkins Street on the east, Poplar Avenue on the north and Danny Thomas Boulevard on the west. To be eligible for a PILOT, the value of the proposed building renovations, site improvements or new construction must be equal to or greater than at least sixty percent (60%) of the total project cost (property & building acquisitions costs or value, soft costs, proposed building renovations, site improvements and/or new construction). See application here: http://www.downtownmemphiscommission.com/documents/PILOT_Application.pdf)

The PILOT program is a financial incentive that is designed to encourage commercial real estate development in and around the Central Business Improvement District.



Provides small businesses and entrepreneurs loans for creating and retaining jobs
Loans are based upon the borrower's needs, repayment ability, what the borrower is financing and confirmation that jobs will be created. Interest rates are determined by perceived credit risk and are two percentage points below the current prime rate with a floor of four percent.
Designed to boost local strategies that enable the community to invest in small businesses and entrepreneurial initiatives, encouraging the creation, retention, and expansion of jobs helping grow the local economy.




Allows a qualified business locating or expanding in a Tier 2 county may take 3 years to create 25 jobs, and business locating or expanding in a Tier 3 county may take 5 years to create 25 jobs
The Enhanced Job Tax Credit for Tier 2 and Tier 3 Enhancement Counties is in addition to the regular Job Tax Credit and cannot be carried forward. If a qualified business enterprise locates or expands in a Tier 2 or Tier 3 Enhancement County, the company will be eligible for an annual Enhanced Job Tax Credit of $4,500 for each qualified job, provided that the job remains filled during the year in which the credit is being taken. The annual credit may be used to offset up to 100% of the company's total franchise and excise (F&E) tax liability each year for a three-year period in Tier 2 counties and a five-year period in Tier 3 counties.

The Enhanced Job Tax Credit was created to promote new industry locations and expansions in more rural areas of the state.




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.




Credit of 6.5% of the 7% state sales and use tax for qualified headquarters
Credit for sales and use tax paid on qualified tangible personal property purchased for the headquarters during the investment period. The investment period for the sales and use tax credit begins one year prior to construction or expansion and ends one year after construction or expansion is substantially complete and cannot exceed 6 years. Note: The taxpayer must file and receive approval of the Qualified Headquarter Business Plan with the Department of Revenue before taking the sales and use tax credits.

Created to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.




Businesses are eligible for tax credits for qualified solar water heating and photovoltaic systems, and for certain solar lighting systems; The tax credits are for 30% of the cost of the system
The tax credits go to businesses that install solar equipment for their use, and to individuals who install qualifying systems on homes they use as a residence (unlike other consumer incentives, the dwelling does not have to be the taxpayer's primary residence - second homes are eligible, although rental properties are not); Note: The credits are available for systems "placed in service" between January 1, 2006 and December 31, 2016;

Developed to encourage energy efficient consumers, businesses and practices.




Provides economically distressed counties with loans for industrial expansion, relocation, retention, and infrastructure development
Only counties with the lowest per capita personal income, the highest percentage of residents below the poverty level, and the highest annual average unemployment rates are eligible for this program. SOC loans are made for buildings, plant equipment, infrastructure, or real estate based on the capital investment leveraged and the number of jobs created by a venture. SOC loans can also be made to local economic development entities for capacity-building projects such as sites or buildings. View a map of the Special Opportunities Counties, here (http://www.tvaed.com/pdf/soc_counties.pdf).

Created to spur growth in economically distressed counties.




Credit of $5,000 per new job to offset up to 100% of franchise and excise taxes for a period of 3 to 20 years; Note: The investment period for the Super Credit is 3 years, but can be expanded to 5 years for investments of $100 million or more and to 7 years for investments of $1 billion or more with the approval of the Commissioner of Economic and Community Development.
Company must invest capital of $100 million or more and create a minimum of 100 jobs paying at least 100% of Tennessee's average occupational wage or invest $10 million in a qualified headquarters facility and create at least 100 new headquarters jobs paying 150% of the average occupational wage. These credits can be used to offset up to 100% of the company's F&E tax liability each year for 3 to 20 years starting the first tax year after the job creation and capital investment thresholds have been met. In addition to the jobs portion of the Super Credit, a company that qualifies for the Super Credit may exempt two-thirds (2/3) of the required capital investment made during the investment period from the property measure of its franchise tax base on Schedule G of the company's F&E tax return during the tax years in which the annual credit is actually taken.

Created to incentivize larger, more capital-intensive investments.




Tax credit of $5,000 for each new high-wage job created, offsetting up to 100% of franchise and excise taxes; Note: The investment period for the Super Credit is 3 years, but can be expanded to 5 years for investments of $100 million or more and to 7 years for investments of $1 billion or more with the approval of the Commissioner of Economic and Community Development.
Must commit to $10 million capital investment and create at least 100 headquarters jobs paying 150% of the average occupational wage in establishing or expanding a qualified headquarters facility. Credit good for three years with no carry forward. The Commissioner of Revenue may lower the wage requirement and investment criteria for a qualified headquarters facility if the headquarters locates in a Central Business District or Economic Recovery Zone. The investment period for the Super Job Tax Credit is 3 years, but may be expanded to 5 years with approval from the Commissioner of Economic and Community Development.

Developed to encourage companies to locate and expand their regional, national or international corporate headquarters in Tennessee.




Monthly power bill credits to qualifying power customers who contribute to the economic development of the Tennessee Valley
Award amounts based on capital investment, jobs added or retained, average wages paid, and annual load factor. Requires at 250-kilowatt peak monthly demand, and minimum of 25 employees with no plans to reduce workforce by 50 percent or more. Must commit to a projected five-year capital investment of 25 percent of an existing facility?s book value, or $2.5 million in a new facility. Requires standard power contract with a remaining term at least as long as the five- or eight-year VII award period.
Created to lower energy costs for companies that contribute to economic growth.