Incentives for Relocation and Expansion

Local Incentives

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• Payment In Lieu Of Tax (PILOT)

  Projects involving a large capital investment and large numbers of new jobs may qualify for a property tax freeze or reduction (property in lieu of tax agreement) in some 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.

• 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 manufacturing operations. The financial strength of the company at the time the bonds are taken to market will determine the rate of the bonds. There is a $10 million cap on small issue bonds; however, there are a number of categories of projects that may be exempted from this limitation. 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 Mayor's Office of Economic Development was created specifically to assist new and existing companies in their interaction with local, state and federal governmental agencies. 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 Metropolitan Government. Fast Track Permitting and One-Stop Assistance are available in all 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.

  To conduct a property search, please contact Melia Leedy.

• 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 (New CBD-Nashville Construction)

  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 of Commerce operates an online job board that is actively marketed within the Nashville Economic Market and in selected U.S. markets to potential relocation employees. Firms that relocate an operation to the Nashville Economic Market are offered unlimited use of this resource for their first month of operations to post employment opportunities.

• Relocation Assistance

  The Nashville Area Chamber of Commerce economic development team 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.

State Incentives

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• Tennessee Tool Kit

  Download the Tennessee Tool Kit, a guide to state-level programs aimed at helping communities create higher-skilled, better-paying jobs.

• Jobs Tax Credit

  This Tennessee tax incentive, offered through the Tennessee Department of Economic and Community Development, provides qualified new or expanding businesses in Tennessee a $2,000 credit if the business creates a minimum of 25 new full-time jobs in a year and makes a capital investment of at least $500,000. The credit can be used to offset a firm's franchise and excise tax liability of 33.3 percent per year for a business that creates 25 to 1,000 jobs; 50 percent for 1,000 to 3,000 jobs; 75 percent for 3,000 to 5,000 jobs and 100 percent for more than 5,000 jobs. The credit balance can be carried forward for 15 years if a company is unable to use all of the credit in the first year.

• Corporate Excise Tax Credit

  One percent of the cost of industrial machinery that has been certified by the Tennessee Department of Revenue, Sales and Use Tax Division, can be taken as an industrial machinery excise tax credit. This credit applies to manufacturing, distribution equipment, computer equipment and telephones for all types of new and expanding companies. Material handling equipment and racking systems for distribution operations also apply when the capital investment exceeds $10 million over three years.

• Sales Tax Exemptions

  Sales tax exemptions and reductions are available on industrial machinery, energy, fuel and water used in a manufacturing process or processing of products for resale off premises. Raw materials for processing, pollution control equipment for manufacturers, and materials that become a component part of the manufactured product are also sales tax-exempt. Material handling equipment and racking equipment are also sales tax-exempt for distribution companies investing a minimum of $10 million over three years. Credits of 5.5 percent of building materials, equipment, and machinery for headquarters of more than $20 million in construction investment are also available.

• Training

  Training assistance for new and existing business and industry is available as an incentive by the Tennessee Department of Economic and Community Development when associated with new investment for facilities, equipment and new job hires.

  FastTrack staff helps a company plan, develop and implement a customized training program that meets initial training needs with follow-up to ensure each phase of the training program is effective and flexible.

  The FastTrack Job Training Assistance program is funded by the state's budgetary process and utilizes only state-appropriated funds for training. FastTrack is the primary source of financial support for new and expanding business and industry training. With the state's network of educational facilities serving as prime delivery agents, blended with the company's staff and other vendors, FastTrack will coordinate directly with the company to develop and implement the necessary skills and knowledge training program.

  Training can be both pre-employment and post-employment, including classroom and on-the-job training. Reimbursement of development and instructor cost either by company personnel or selected vendors, including educational institutions, are eligible for support. Travel-related cost for the purpose of training is considered a viable training expense. Training facilities and equipment are contingent upon the project and the need of the local area.

• Tennessee Job Skills Program

  Tennessee Job Skills (TJS) program is a workforce incentive grant program through the Tennessee Department of Economic and Community Development focused on enhancing employment opportunities and meeting the needs of new and existing industry. Through training, the program shall give priority to the creation and retention of high-wage jobs. Focus is on employers and industries that promote high-skill, high-wage jobs for emerging, in-demand, and high-technology manufacturing occupations.

  Training is a parallel component to technological advancement. TJS is a work force incentive grant program designed to assist existing employers in elevating the skills of their employees.

  TJS staff helps a company plan, develop, and implement a customized training program that meets the company's initial training needs and follow-up to ensure each phase of the training program is effective and flexible.

• Tennessee Industrial Infrastructure Program

  This fund, offered through the Tennessee Department of Economic and Community Development, is utilized to offset infrastructure improvement costs, site costs and other infrastructure-related costs such as water and wastewater extensions, transportation extensions, site improvements, and other improvements. The maximum amount available for any one project is $750,000. The amount of a grant is based on a cost-benefit analysis conducted by the Tennessee Department of Economic and Community Development and the infrastructure needs of the site.

  The Department of Labor and Workforce Development can provide assistance in the recruitment of qualified job applicants. Recruitment services can be provided and may include accepting and screening applications, testing, and referral of qualified applicants, based upon the company-prepared specifications. Workforce Development also administers the Workforce Investment Act program, which could provide training assistance for those eligible participants.

TVA Incentives

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• Economic Development Loan Fund

  The EDLF stimulates job creation and capital investment in the TVA region by assisting new and expanding industrial companies. Depending on job creation and capital investment, loans are made for up to $2 million to purchase fixed assets.

• Valley Investment Initiative

  The Valley Investment Initiative (VII) is an economic development incentive jointly offered by TVA and distributors of TVA power. VII rewards end-use power customers in targeted business sectors who make a long-term commitment to the economic development of the Valley. For more information, visit www.TVAed.com/vii.

• Technical Services

  • Site evaluations
  • Architectural and engineering services
  • Land development plans
  • Architectural renderings and schematics
  • Project reviews
  • Analysis for environmental and compliance studies

• Economic Research and Analysis

  • Economic impact analysis
  • Company lists
  • Market research and industry reports
  • Target industry analysis
  • Comparative advantage analysis
  • Business opportunities reports
  • County profiles
  • Minority demographic and economic analysis
  • General economic research