Tennessee Standard Job Tax Credit

Tennessee Standard Job Tax Credit

Provides Tennessee business expansion support through franchise and excise tax relief linked to job growth and local investment.

Eligibility · United States · US-TN

The Tennessee Standard Job Tax Credit is a franchise and excise (F&E) tax credit administered by the Tennessee Department of Revenue (TN DOR) that provides $4,500 per net new full-time job created by qualifying businesses expanding or locating in Tennessee. To claim the credit, businesses must invest a minimum of $500,000 in capital assets over three years and meet county-tiered job creation thresholds: 25 net new jobs in Tier 1 and Tier 2 counties, 20 jobs in Tier 3 counties, and 10 jobs in Tier 4 counties. Tier designations reflect levels of economic distress, with Tier 4 being the most distressed and carrying the lowest job threshold to encourage investment in underserved areas.

The Standard Job Tax Credit offsets up to 50% of a company's annual F&E tax liability; any unused credit may carry forward to subsequent tax years. The credit is claimed directly on the annual Tennessee franchise and excise tax return and requires no separate competitive application — eligibility is self-assessed against published thresholds and verified by TN DOR. The credit stacks with the Enhanced Job Tax Credit for businesses locating in Tier 2, 3, or 4 enhancement counties, which can bring the combined credit to $9,000 per net new job.

Only entities subject to Tennessee's franchise and excise tax are eligible; nonprofits, pass-through entities without Tennessee F&E tax exposure, and out-of-state businesses without Tennessee nexus cannot benefit. The incentive is sector-agnostic and available to businesses in any qualifying industry that meets the capital investment and job creation thresholds. TN DOR administers all F&E-based incentives; cash-based workforce grants (FastTrack) are administered separately by the Tennessee Department of Economic and Community Development.