Companies considering relocation to Tennessee need to know the state and local tax and economic incentives available to them. While some of these benefits are "on the books" and available without affirmative action on the part of the relocating or expanding company, many of the more lucrative incentives require awareness, request and individual negotiation and implementation.
Bass, Berry & Sims attorneys have extensive state-wide experience representing relocating and expanding businesses in connection with all types of Tennessee tax and economic incentives, including:
- State Tax Incentives – Members of our state and local tax group represent companies in understanding and maximizing relocation and expansion state tax incentives, including credits that can be used to offset Tennessee's franchise and excise taxes and reductions in sale or use tax owed on purchases made in connection with a qualifying relocation or expansion.
- PILOT Agreements – We have relationships with local government officials in all of the state's 95 counties and have represented more than 100 companies in negotiating and coordinating the implementation of payment in lieu of taxes (PILOT) agreements with respect to investments ranging from $10 million to more than $10 billion.
- Tax Increment, Special Assessment and Industrial Development Bond Financing – We pioneered the use of tax increment and special assessment bond financing with extensive involvement in the drafting of Tennessee authorizing legislation and closing some of the first tax increment financing (TIF) and special assessment financings in Tennessee. We also have extensive experience with "qualified small issue" manufacturing bonds (formerly referred to as "industrial development bonds"), which, despite tightening federal tax restrictions, remain a cost saving option for smaller relocating or expanding businesses.
- State Grant Programs – We have helped clients qualify for state grant and loan programs, such as the FastTrack Infrastructure Development Program and the FastTrack Job Training Assistance Program, which are designed to help cover the costs of building infrastructure at new facilities and defray the cost of employee training.
- Opportunity Zones – In addition to these state and local incentives, the federal opportunity zones program offers substantial tax benefits for businesses who expand or relocate to one of the state’s 176 qualified opportunity zones. Our incentives experts combine in-depth expertise in opportunity zones with decades of experience in local incentives to help our clients make the most of their expansion or relocation to the state.
In addition to our tax and economic incentives capabilities, we offer many other services to economic development, including:
- Government relations
- Environmental laws and regulations
- Zoning and land use planning
- Employment law
- Real estate and commercial financing
- Construction law