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Tennessee Industrial Machinery Tax Credit

Tennessee Industrial Machinery Tax Credit

Supports Tennessee manufacturers with state tax incentives for qualifying industrial machinery upgrades and manufacturing competitiveness.

Between cyclesTennessee Department of RevenueUnited StatesEligible in Tennessee
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About

Tennessee's Industrial Machinery Tax Credit is a franchise and excise (F&E) tax credit administered by the Tennessee Department of Revenue (TN DOR). The base credit rate is 1% of the purchase price, third-party installation cost, or repair cost of qualifying industrial machinery placed into service in Tennessee. Enhanced credit rates — up to 10% — apply to machinery investments in Tier 2, Tier 3, …

What this grant funds

Tennessee franchise and excise tax credit of 1–10% on the purchase, installation, and repair of qualifying industrial machinery used in manufacturing, warehousing, distribution, R&D facilities, and call centers.

Key facts
CycleiHow often this grant runs — e.g. annually, on a rolling basis, or a one-off call.Annual
Next deadlineiThe next date applications are due. Rolling means you can apply any time.—
Decision timeiTypical time from the deadline to the funder's decision.—
Project durationiHow long the funded work is expected to run.—
Award typeiThe form of funding — grant, equity, loan, tax credit, etc.Tax credit
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.0%
Funding pooliThe total budget available across all awards in this round.—
Funding analytics

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Industries

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Eligibility criteria

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Application process

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Last verified: 24 Jul 2026Source: www.tn.gov