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The Industrial Machinery Tax Credit (Tennessee)

Eligibility 
Agricultural
Commercial
Construction
Developer
Fuel Distributor
General Public/Consumer
Industrial
Installer/Contractor
Investor-Owned Utility
Municipal/Public Utility
Rural Electric Cooperative
Systems Integrator
Transportation
Utility
Savings Category 
Fuel Cells
Photovoltaics
Program Info
State 
Tennessee
Program Type 
Corporate Tax Incentive
Provider 
Tennessee Department of Economic and Community Development

The Industrial Machinery Tax Credit provides tax savings from equipment investments dependent upon the size investment made during the period. To qualify for this credit, companies are not required to create new jobs. This incentive may be used to offset up to 50% of the company’s F&E tax liability. Any unused Industrial Machinery Tax Credit may be carried forward for up to 15 years. For capital investments less than $100,000,000 the % of credit is 1%, for $100,000,000-$250,000,000 it is 3%, for $250,000,000-500,000,000 it is 5% for $500,000,000-$1,000,000,000 it is 7%, for $1,000,000,000+ it is 10%. The investment period for the Industrial Machinery Credit is 3 years, but may be expanded to 5 years for businesses investing less than $1 billion and to 7 years for businesses investing $1 billion or more.