Tennessee House Bill 809, enacted into law in Public Chapter 377, Acts of 2003 and codified under Title 67, Chapter 5, states that wind energy systems operated by public utilities, businesses or industrial facilities shall not be taxed at more than one-third of their total installed cost. This law applies to the initial appraisal and subsequent appraisals of wind energy systems, based on a reduced generation capacity of 2/3 due to intermittent production.
The Water Quality Control Act (WQCA) establishes the water pollution control program. The WQCA identifies the responsibilities and extent of authority for the Commissioner of the Water Quality Control Board. The WQCA establishes the concept of clean water goals and water quality planning and assessment. The WQCA provides for a permitting program for discharges to, or alterations of, water of the state. The Act also has an antidegredation statement protecting high quality surface waters.
Upper Cumberland Electric Membership Corporation (UCEMC), in collaboration with the Tennessee Valley Authority, offers incentives for its customers to purchase and install energy efficient equipment through the Energy Right Program. Rebates are available for energy efficient heat pumps, water heaters and new homes which meet the program standards. A $150 rebate will be given to any customer installing a new heat pump in UCEMC's service area, either residential or commercial. Commercial accounts are eligible for a rebate of $150 for each 3 ton of heat pump.
The Rural Opportunity Initiative Enhanced Job Tax Credit program provides enhanced job tax credits to businesses locating or expanding in certain Tennessee counties considered Tier 2 or Tier 3 Enhancement Counties, which are rural areas targeted for economic development. 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 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.
The Emerging Industry Sales and Use Tax Credit allows a taxpayer to take a credit, to apply for a refund of taxes paid, or to apply for authority to make tax-exempt purchases of machinery and equipment used to produce electricity in a certified green energy production facility. A certified green energy production facility is a facility certified by the Department of Environment and Conservation as producing electricity for use and consumption off the premises using clean energy technology.
The Tennessee Water Resources Information Act is designed to prevent the lowering of the ground water table by requiring that adequate information is obtained to document current demand for water and to project growth in that demand. No person shall withdraw 10,000 or more gallons of water per day from surface water or a groundwater source unless the withdrawal is registered and approved by the Commissioner of the Department of Environment and Conservation. The Water Withdrawal Registration Act is a part of the Tennessee Water Resources Information Act.
The Tennessee Small Business Company Credit Act offers $120 million in gross premiums tax credits to insurance companies that invest in companies certified by the State of Tennessee as TNInvestcos. Utilizing standardized criteria, Tennessee Department of Economic and Community Development (ECD) and the Tennessee Department of Revenue, in conjunction with the Tennessee Technology Development Corporation, will begin to award the credits to eligible companies in $20 million credit allocations no later than December 31, 2009.