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Combined Heat and Power Partnership

Sales and Use Tax Credit for Emerging Clean Energy Industry

Date Last Updated6/27/2013
Incentive TypeTax
State/FederalTN
Incentive Administrator/Contact OfficeTennessee Department of Revenue
Incentive Initiation Date7/1/2009
Incentive Size and Funding SourceTennessee's Sales and Use Tax Credit for Emerging Industries includes a credit for manufacturers of clean energy technologies on the sale or use of qualified tangible personal property. The Sales and Use Tax is reduced to 0.5% for clean energy technology manufacturers.

The taxpayer must submit an application to the Department of Revenue to be certified as a qualified facility. Both the Department of Revenue and Department of Economic and Community Development must determine that the allowance of the credit is in the best interests of the state. Once approved as a qualified facility, the taxpayer must submit a claim for credit and documentation that the sales and use tax has been paid on qualified tangible property. Qualified property includes building materials, machinery, and equipment used in the qualified facility and purchased (or leased) during the investment period. The Department of Revenue will then provide a determination to the taxpayer on the amount and how to take the credit.
Eligible RecipientManufacturers of clean energy technologies.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)Does Not Specify
Other Selected Eligibility CriteriaQualifying manufacturers must make a minimum $100 million investment, create and maintain 50 full-time jobs for 10 years that pay 150% above the Tennessee occupational average wage, and the taxpayer must be subject to the franchise and excise taxes.

Clean energy technologies are defined as those that result in energy efficiency and technologies that use biomass, geothermal, hydrogen, hydropower, landfill, solar, and wind to generate energy.
Resource Website(s) http://www.dsireusa.org/incentives/
incentive.cfm?Incentive_Code=TN55F&
amp;currentpageid=3&EE=1&RE=1

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