Tennessee has long been considered a state with one of the most business friendly economic climates in the nation. Tennessee has been twice ranked by Site Selection magazine as one of the five best states in the nation in which to locate a business and has the third lowest combined state and local tax burden for businesses in the country. In 2006, Forbes magazine ranked Tennessee the 20th best state to locate a business. In 2007, Tennessee was rated 13th in the same ranking – the largest single improvement of any state in the nation.
Southern Business and Development has named Tennessee State of the Year for two years running in both 2009 and 2010 for the number of new jobs created and the amount of new capital invested. The Pew Center for the States has named Tennessee one of the top three fasted growing states in the nation for clean energy jobs.
Tennessee does not have an income tax on personal wages nor a state property tax.
Jobs Tax Credit
Tennessee offers a program called the Rural Opportunity Initiative or ROI. The ROI provides Enhanced Job Tax Credits to businesses locating or expanding in certain Tennessee Counties, including Fentress County, a Tier 2 Enhancement County. The State offers a $4,500 per job tax credit to qualified businesses making a $500,000 capital investment in a 12 month period and creating a minimum of 25 net new full-time jobs in a period not to exceed 3 years. The Job Tax Credit may offset up to 50% F&E liability with 15 year carry-forward. Additional Enhanced Job Tax Credit of $4,500 per job each year for 3 years to offset up to 100% of F&E liability with no carry-forward.