General Incentives

Economic Gardening Program    

Guides businesses through economic gardening program
This incentive is being tested with a pilot of 22 businesses in Memphis but may expand in the future. Focuses on growth-minded stage-2 businesses with revenue between $1 and $50 million, and 10 to 100 employees. The economic gardening program provides technical assistance to develop and expand existing local businesses with growth potential.
Being developed to fill the gap of technical assistance for existing small businesses looking to expand.

Provides grant funding for customized training for existing for-profit and not-for-profit (healthcare related) businesses that result in layoff aversion
For profit businesses, and not-for-profit healthcare businesses are eligible to apply. Note: 1) The grant period is October 1st through September 30th; 2) The application deadline for the 2012-2013 grants is October 31st, 2012; 3) Applicant must be in business one year prior to submitting an application; 4) Applicant must employ a minimum of five full time employees (independent contractor/1099 employees are not eligible for training); 5) Applicant must be current on all federal and state taxes; 6) Maximum award is $25,000 per grant, with a total funding limit of $50,000 per employer in consecutive program years; and 7) A 50% employer match is required.
Developed to help existing for-profit and not-for-profit (healthcare related) businesses avoid employee layoffs.

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

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.

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.