Existing Business Resources

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• Training

  FastTrack Job Training Assitance (FJTAP)

  This incentive is available to both new and expanding industries 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 tailored and flexible. Companies will track costs associated with implementation of the training program, then submit to the state for reimbursement.

  • Training may include:
  • Classroom instruction.
  • On-the-job training. 
  • Vendor training from the manufacturer of a piece industrial equipment. 
  • System support for certain types of plant-wide or company- wide applications.
  • Development and coordination of instructional materials and training programs.
  • Travel related to training.

  Job Based Training Reimbursement (JBT)

  A potentially faster program for reimbursement of training costs, companies may seek reimbursement from the state of Tennessee once a job creation commitment and cost-per-job is established.

  In order to qualify, companies must work with ECD to reach a contractual agreement which determines:

  • The cost per job and the total commitment of jobs.
  • Once agreed upon with ECD, companies can seek reimbursement of 50% of the cost per job within the first 90 days after the job is created. The remaining 50% can be claimed 180 days after the job is created.
  • The company must agree to provide documentation including the number of jobs created and the wages paid for each job.
  • Multi-year contracts between a company and ECD can be reached to accommodate multi-year job creation projects.

  If the total commitment of jobs is reached, companies may seek the entire training reimbursement allocation through JBT.

• Tax-Based Incentives

  Jobs Tax Credit

  Tennessee allows “qualified business enterprises” a credit against their franchise and excise taxes based on their capital investment and the number of jobs created. The amount of the credit and the period of time during which it can be used varies according to the size of the investment.

  • A company investing $500,000 and creating 25 new jobs can claim a $2,000 credit against their F&E taxes over a period of 15 years.
  • If the company locates in an economically distressed county, the Jobs Tax Credit increases to $4,500 per job with a 15 year carry-forward.
  • The company can qualify for a $4,500 Jobs Tax Credit if it invests $20 million in capital and creates a minimum of 1,000 jobs in a federally designated empowerment zone. Currently, Tennessee’s only federally designated empowerment zone is in Knoxville, Tenn.
  • The percentage of tax liability companies are able to offset ranges from 33.33% to 100% based on the number of jobs created, ranging from 1,000 to 5,000 or more.

  Jobs Tax Super Credit

  For larger, more capital-intensive investments, Tennessee has created a Super Credit which applies to those companies investing capital of $100 million or more and creating a minimum of 100 jobs paying at least 100% of Tennessee’s average occupational wage. These credits can be used to offset up to 100% of the companies' F&E tax liability, but must be taken in the first tax year after the job creation and capital investment thresholds have been met and can be taken annually.

  The Super Credit does not include carry-forward provisions and is available in addition to Jobs Tax Credits. The Super Credit allows companies to exempt 2/3 of the required capital investment on Schedule G of the company’s franchise and excise tax return during the period in which the investment is being made. Investments must be made during a 3-year period, but can be extended to 5 years at the discretion of the Commissioner of Economic and Community Development.

  Industrial Machinery Tax Credit

  For capital investments in industrial machinery, Tennessee offers manufacturers a tax credit offsetting up to 50% of F&E tax liability. To qualify for this credit, companies are not required to create new jobs. The credit applies to the purchase, installation and repair of industrial machinery as defined in T.C.A. 67-6-102. The credit also applies to the purchase and installation of computer and telephone equipment purchased in order to meet the capital investment thresholds of the Jobs Tax Credit.

  This credit has a 15-year carry-forward.

  Headquarters Tax Credit

  In order to encourage companies to locate their corporate headquarters in Tennessee, the state offers tax credits based on the cost of relocating the company and building a new headquarters facility in Tennessee.

  Emerging Industry Tax Credits

  Tennessee law gives the Commissioner of Revenue and the Commissioner of Economic and Community Development broad latitude in classifying certain projects as part of an emerging industry. If companies can demonstrate a strong growth potential and commit to creating jobs which pay above the county's average occupational wage, the state may waive the threshold of 25 new jobs created in order to qualify for the Jobs Tax Credit.

  Data Center Tax Credit

  Companies may obtain tax credits for the purchase of materials related to the construction of a data center -- which is defined as a building or buildings housing high-technology computer systems and related equipment -- if they create 25 new jobs paying at least 150% of the state’s average occupational wage and invest a minimum of $250 million in capital.

  Pollution Control Equipment

  If a Tennessee company obtains a certificate from the Tennessee Department of Environment and Conservation certifying that their purchase of pollution control equipment is required by federal, state or local law and the equipment is used for the control, reduction or elimination of water pollution, air pollution or in the treatment of hazardous waste, the equipment will be taxed at salvage value for the purposes of calculating tangible personal property tax. The certification will also allow the purchase of the equipment to be exempt from sales and use tax and will exclude the equipment from the calculation of the company's franchise tax base.

  Daycare Facility Tax Credit

  In order to encourage the construction of daycare facilities, the state of Tennessee offers companies a tax credit against their F&E tax liability equal to the cost of 25% of the construction of a facility with a cost not to exceed $100,000 per facility and a tax credit not to exceed $25,000 per facility.

  Payment In Lieu Of Tax (PILOT)

  Projects involving large a capital investment and large numbers of new jobs may qualify for a property tax freeze or reduction (property in lieu of tax agreement) in almost all of the counties of the 10-county Nashville Economic Market. These requests are considered on a case-by-case basis by city and county officials and are based on an analysis of job creation, economic impact, capital investment and wage rates.

• Infrastructure

  FastTrack Infrastructure Development Program (FIDP)

  In order to qualify for this program, local communities must apply to ECD with a goal of improving public infrastructure in order to create new jobs and business investment. Applications must be for specific projects and must be tied to a company commitment to create or retain a defined number of jobs.

  Qualifying projects must involve companies engaging in manufacturing or other economic activities beneficial to the state of Tennessee. Companies for whom more than 50% of the product or service is involved in the manufacture of products for export are also eligible. FIDP grants require local community matching funds calculated along a varying scale based on a community’s ability to pay.

  FastTrack Infrastructure Development funds can be used to build:

  • Water systems, including intake structures, treatment plants, storage tanks, transmission lines or other structures associated with public water service
  • Wastewater systems, including collector lines, treatment plants and other structures associated with public wastewater treatment service
  • Transportation systems, including industrial access roads, rail sidings, port facilities, airport improvements and other public transportation infrastructure
  • Site improvements, including grading, infilling, leveling or other extraordinary situations in which the physical conditions of a site must be altered in order to allow capital investment for job creation
  • Technology systems, including the extension of broadband or high speed data transmission lines necessary for companies to conduct business
  • Other improvements to the physical infrastructure of a site may be considered if communities can demonstrate such improvements are required for the location or expansion of a business which creates jobs.

  FastTrack Infrastructure Development funds can help BEFORE a project is underway:

  FIDP funds may be used by communities to construct public infrastructure to community-owned speculative buildings and to speculative industrial areas and industrial parks. To qualify, a community must be located in a Tier 1, Tier 2 or Tier 3 economically distressed county.

  • Communities seeking technical expertise on transportation improvements designed to facilitate business investment and job recruitment may also qualify for the State Industrial Access Program (SIAP). Communities may submit multiple designs for an industrial project to engineers with the Tennessee Department of Transportation for comment on feasibility.
  • ECD will also provide counseling to communities seeking to obtain Industrial Revenue Bond financing in either a taxable or tax-free scenario.

• Low-interest Loans/Energy Credits

  As a potential employer in the Tennessee Valley, your company could be eligible for several programs that can benefit your company’s operations, electric service, operating costs, and bottom line. Brief descriptions and potential benefits from the programs are as follows:

  The Valley Advantage

  Through the Valley Advantage initiative, TVA makes direct, cash investments in major economic development projects in the Tennessee Valley. Valley Advantage funding for any project is based upon the economic impact of the project, as measured by the capital investment, number of jobs created, and amount of new power demand that is created within the first three years of the project. The program will only be used for projects determined to be environmentally sound. The program’s minimum requirements are listed below:

  Capital investment: $20 million
  Employment: 100 new jobs
  Power demand: 500 kilowatts
  Wages: 10% above the local average

  Valley Advantage funds can be used for a variety of purposes including electrical infrastructure, building improvements, manufacturing equipment, and other needs. Grant amounts are determined based upon the commitments by the company toward the program requirements.

  Enhanced Growth Credit (EGC)

  The Enhanced Growth Credit program provides credits on power bills to new or expanding industrial companies that create new, firm electrical demand of 100 kW or more. Customers may choose one of the following EGC options:

  • Four-year “flat rate” option – allows a monthly $6 credit per kW for the life of the credit.
  • Eight-year “declining rate” option – allows a monthly $6 credit per kW in the first year; monthly credit is reduced by $0.75 per kW in each subsequent year.

  The credit amounts will vary based upon each month’s actual demand, and there is no maximum credit amount. For expansions a demand baseline will be set at the highest demand over the previous twelve months. Benefits of the EGC accrue on qualifying load above that demand. A table of potential savings scenarios is as follows: 

  New Firm MW Demand	Four Year Option Savings	Eight Year Option Savings
  500 kW	$144,000	$162,000
  1 MW	$288,000	$324,000
  5 MW	$1,440,000	$1,620,000
  10 MW	$2,880,000	$3,240,000

  Small Manufacturing Credit (SMC)

  Companies whose monthly demand falls between 1,000 and 5,000 kW and SIC code is between 20 and 39, will qualify to receive the substantial benefits of the Small Manufacturing Credit Program. These credits are offered by TVA and the local power distributor to assist new and expanded businesses. The credit is available under Part 3 of the GSA or TGSA rate schedules. In any month when the metered demand for firm power exceeds 1,000 kW, a credit is applied to each kW of metered demand used in determining the firm billing and each kWh of firm energy. The monthly credit is equal to the sum of:

  • $1.38 per kW for the first 1,000 kW of metered demand
  • $1.63 per kW of any metered demand amount in excess of 1,000 kW, and
  • $0.0054 per kWh of firm energy (0.54 cents/kWh)

  Economic Development Loan Fund (EDLF)

  A multi-million-dollar, low-interest loan program that may be used for the purchase of fixed assets (land, building or production equipment) or other needs. Loan amounts, terms and interest rates are dependent upon criteria such as number of jobs created, total capital investment, security provided, and impact on the community. All loans are subject to a financial and eligibility review.

  • Loan amounts are determined based upon job growth and project needs.
  • Interest rates vary by project, but are typically below the prime lending rate.
  • Loan terms for equipment loans may be up to 7 years, while building and real estate loans may be up to 10 years.
  • Leveraging other funds is TVA’s role as a lender, and we are seeking to leverage $3 to every $1 invested through the EDLF program.
  • No loan will exceed $2 million.

  Enhanced Security Deposit Program

  The Tennessee Valley Enhanced Security Deposit Program is available to commercial and industrial electric customers through a partnership between TVA and participating distributors of TVA power. The program allows the waiver or refund of electric utility deposits to qualifying customer. The process is simple, quick, and free.

  • The program is open to creditworthy commercial and industrial customers with an average monthly billing of greater than 50 kW.
  • Local electric power distributor representatives work with selected business customers to prepare a credit application, which is sent to a third party underwriter for review.

  Upon approval, your distributor will waive or refund the electric utility deposit.

• Codes/Permitting

  Industrial Revenue Bonds

  Each of the 10 counties in the Nashville Economic Market has an active industrial development board authorized to issue bonds to finance industrial facilities. Tax-exempt industrial development bonds are available for qualified operations. The financial strength of the company at the time the bonds are taken to market will determine the rate of the bonds. Under the IRB board's jurisdiction, taxable bonds can be issued and loaned to eligible companies to acquire land, buildings, or equipment. It is our suggestion that the firm's private bond counsel communicate with the IRB board's legal counsel in order to identify the appropriateness of this financing alternative.

  Fast Track Permitting & One-Stop Business Assistance

  The One-Stop Business Assistance Program provides a streamlined structure to access representatives of all applicable local, state and federal agencies in one meeting to outline services, answer questions, fulfill requests and solve problems. The One-Stop Business Assistance Program is designed to facilitate and expedite the permitting, licensing and regulatory processes within the 10 counties of the Nashville Economic Market.

  Commercial Real Estate Database

  The Nashville Chamber economic development staff has access to comprehensive databases of all available industrial buildings, office buildings and greenfield sites in the 10-county Nashville Economic Market. The resource is available to relocating and expanding firms.

  Foreign Trade Zones

  The Nashville Economic Market currently has three general-purpose foreign trade zones and a number of sub zones designated for specific company usages. A foreign trade zone provides flexibility and cost savings to importers and exporters. Goods can be stored, processed, manipulated and integrated with domestic goods, all before paying duties.

  Tax Increment Financing

  Tax Increment Financing (TIF) allows the cost of infrastructure and the costs of assembly, relocation, demolition and development of a site within a designated redevelopment district to be financed through future increases in property taxes generated by the development itself. As private investments add to the tax base, the increased revenues are placed in a special fund with the revenues then funneled back into the project. TIF funds can amount to a substantial reduction in overall project development costs and can make available for reinvestment approximately 10 percent of an eligible project's total development costs.

  Job Board

  The Nashville Area Chamber operates an online job board that is actively marketed within the Nashville Economic Market and across the U.S. to young professionals, recent college graduates and potential relocating employees.

  Businesses that are expanding or relocating to the area can be highlighted on the entry page of the job site as a featured employer with a logo. They will have unlimited use of this resource to recruit talent by linking to their company job site or posting job opportunities.

  Relocation Assistance

  The Nashville Area Chamber of Commerce economic development staff is committed to providing hands-on services to firms that are relocating employees from other bases of operations. These services may include organized trips to existing locations for briefings and seminars, a range of information on the region to educate potential relocating families about Nashville living, and on-site Nashville tours or events for potential relocating employees who are given the opportunity to visit Nashville prior to making the relocation decision.