State unveils new tax credit program for entertainment projects
The state Entertainment Commission and the Departement of Economic and Community Development are launching a new tax credit program to promote projects in Tennessee.
Here’s the full release:
NASHVILLE, Tenn. – The Tennessee Entertainment Commission (TEC), in partnership with the Tennessee Department of Revenue and Department of Economic and Community Development, announced today a new franchise and excise (F&E) tax credit program aimed to advance Tennessee’s entertainment industry by promoting job creation and economic development.
Companies approved as a qualified production can apply for a tax credit generated through resident and non-resident Tennessee payroll expenses and apply for a point of purchase sales tax exemption certificate on non-payroll expenses. Qualified productions include scripted and unscripted television, feature films, video game development, animation, commercials and audio/visual postproduction.
“Tennessee is home to one of the most robust entertainment industries in the world, and we strive to provide the resources needed for our state to build upon this momentum,” TNECD Commissioner Bob Rolfe said. “We are proud to partner with the Department of Revenue and Tennessee Entertainment Commission and look forward to seeing how this new program will further strengthen our state’s entertainment footprint while creating additional jobs for Tennesseans.”
The F&E tax credit is generated by Tennessee payroll expenditures for all above-the-line and below-the-line talent services being performed in the state on a qualified production. The standard credit generates up to 40 percent on resident and non-resident payroll expenses, with a 10 percent uplift on payroll expenses for Tennesseans living in economically distressed areas.
“We appreciate the opportunity to work with the Tennessee Entertainment Commission, the Tennessee Department of Economic and Community Development, and the entertainment industry to make this incentive a success,” Revenue Commissioner David Gerregano said. “Through this collaboration, we are happy to support the continued growth of Tennessee’s entertainment industry.”
In addition to the tax credit, the program offers a point of purchase sales and use tax exemption on qualified goods and services providing an immediate and usable benefit to the taxpayer. This point of purchase sales tax exemption generates a savings of 9.25 percent to 9.75 percent on all taxable goods or services and tangible personal property necessary to the qualified production.
The program creates a sustainable model for the industry, encouraging musicians, professional filmmakers, television producers and video game developers to create and share their craft. The F&E tax credit program will also help market the state while supporting the talented professionals in the entertainment industry.
“Incentives play a pivotal role in the development of talent, workforce and infrastructure in the entertainment industry,” TEC Executive Director Bob Raines said. “The Tennessee Entertainment Commission continues to work toward dedicated and intentional strategies that reinforce and retain our creative class.”
TEC promotes and facilitates economic development of the entertainment industry through the recruitment of business to Tennessee. Since 2017, TEC has assisted more than 1,100 production projects, and nearly 10,000 Tennessee workers have been hired as a result of these projects.
To learn more about the new F&E tax credit program, visit tnentertainment.com/film/incentives/fe-incentive.
About the Tennessee Department of Economic and Community Development
The Tennessee Department of Economic and Community Development’s mission is to develop strategies that help make Tennessee the No. 1 location in the Southeast for high quality jobs. To grow and strengthen Tennessee, the department seeks to attract new corporate investment to the state and works with Tennessee companies to facilitate expansion and economic growth. Find us on the web: tnecd.com. Follow us on Twitter, Instagram and LinkedIn. Like us on Facebook. Subscribe to our YouTube channel.
Lee administration approves $28M in block grants
Gov. Bill Lee’s administration has approved $28.5 million in block grants for 62 community projects. Here’s the release from the Department of Economic and Community Development:
NASHVILLE, Tenn. – Tennessee Gov. Bill Lee and Department of Economic and Community Development Commissioner Bob Rolfe recently approved $28.5 million in Community Development Block Grants (CDBG), which will assist communities with infrastructure improvements, housing rehabilitations and health and safety initiatives.
“Investing in local infrastructure is one of our top priorities, and these funds will play a vital role as communities work to update their assets and keep their communities safe,” said Lee. “These recipients are proactively preparing their communities for future economic opportunities and continued growth.”
“Community Development Block Grants are an enormous asset to communities across Tennessee,” Rolfe said. “The 62 communities receiving CDBG funding will be better equipped for future economic opportunities, which in turn, will help our state continue to grow and succeed. I congratulate these recipients and look forward to seeing the successes in each community in the years to come.”
The allocation of CDBG funds is based on priorities set through the public meeting process at the local community level. The CDBG program is funded through HUD and administered in Tennessee by the Department of Economic and Community Development. Funds are available for water and sewer improvements and new extensions, housing rehabilitation and health and safety projects.
Here are the 62 Community Development Block Grants:
| Community | Project | Amount |
| Altamont | Water System Improvements | $630,000 |
| Bethel Springs | Water System Improvements | $313,049 |
| Bolivar | Sewer System Improvements | $361,000 |
| Brighton | Drainage Improvements | $326,679 |
| Brownsville | Sewer System Improvements | $630,000 |
| Bruceton | Sewer System Improvements | $511,750 |
| Carroll County | Fire Protection | $371,700 |
| Carthage | Fire Protection | $296,024 |
| Celina | Sewer System Improvements | $630,000 |
| Claiborne County | Water Line Extension | $630,000 |
| Clay County | EMS Improvements | $206,706 |
| Cookeville | Sewer System Improvements | $580,675 |
| Decatur | Water System Improvements | $630,000 |
| Decherd | Emergency Warning System | $130,500 |
| Ducktown | Water System Improvements | $630,000 |
| Englewood | Sewer System Improvements | $630,000 |
| Enville | Housing Rehabilitation | $525,000 |
| Grand Junction | Sewer System Improvements | $209,760 |
| Graysville | Fire Protection | $420,000 |
| Grundy County | Sewer System Improvements | $630,000 |
| Hardin County | Fire Protection | $290,112 |
| Harriman | Water System Improvements | $630,000 |
| Harrogate | Sewer Line Extension | $474,030 |
| Henderson County | Fire Protection | $288,176 |
| Huntsville | Sewer System Improvements | $630,000 |
| Jacksboro | Sewer System Improvements | $630,000 |
| Jamestown | Sewer System Improvements | $630,000 |
| Jefferson City | Sewer System Improvements | $629,993 |
| Jefferson County | EMS Improvements | $420,000 |
| Johnson County | EMS Improvements | $293,582 |
| Lauderdale County | Water System Improvements | $547,662 |
| Lawrence County | Water Line Extension | $630,000 |
| Lawrenceburg | Street Light Improvements | $268,180 |
| Lewisburg | Sewer System Improvements | $450,000 |
| Loudon | Sewer System Improvements | $630,000 |
| Luttrell | Sewer System Improvements | $524,342 |
| Mason | Water Line Extension | $431,935 |
| Meigs County | Water System Improvements | $630,000 |
| Monroe County | Water Line Extension | $630,000 |
| Mount Carmel | Water System Improvements | $476,182 |
| Oakdale | EMS Improvements | $290,535 |
| Obion County | Sewer System Improvements | $564,000 |
| Oneida | Water System Improvements | $630,000 |
| Overton County | Fire Protection | $420,000 |
| Pulaski | Sewer System Improvements | $630,000 |
| Putnam County | Fire Protection | $318,750 |
| Rutherford | Water System Improvements | $276,854 |
| Saltillo | Emergency Warning System | $112,601 |
| Savannah | Sewer System Improvements | $600,000 |
| Sevier County | Water System Improvements | $215,426 |
| Smith County | Emergency Rescue Improvements | $285,600 |
| South Carthage | Housing Rehabilitation | $298,100 |
| Spring City | Sewer System Improvements | $630,000 |
| Springfield | Sewer System Improvements | $630,000 |
| Stanton | Sewer System Improvements | $513,188 |
| Surgoinsville | Water System Improvements | $468,700 |
| Tipton County | Emergency Rescue Improvements | $355,833 |
| Tusculum | Fire Protection | $298,075 |
| Unicoi County | Sewer Line Extension | $377,311 |
| Van Buren County | EMS Improvements | $341,088 |
| Vanleer | Water System Improvements | $458,000 |
| Warren County | Fire Protection | $370,829 |
Korean power equipment maker buys Mitsubishi transformer plant in Memphis
Gov. Bill Lee speaks at an announcement that Korean electric power equipment maker HICO will buy a transformer plant in Memphis on Dec. 13, 2019. (Photo: Gov. Bill Lee’s office)
Korean electric power equipment maker Hyosung Heavy Industries is buying a Memphis transformer plant from Mitsubishi, which had planned to shutter the facility and lay off 160 workers. The HICO deal involves an $87 million investment and the creation of 410 jobs over the next seven years.
Here’s the release from state Department of Economic and Community Development:
MEMPHIS, Tenn. – Tennessee Governor Bill Lee, Department of Economic and Community Development Commissioner Bob Rolfe and Hyosung Heavy Industries (HICO) officials announced today that the company will locate its first U.S. production operations in Memphis.
HICO will invest $86.9 million and create 410 jobs in Shelby County over the next seven years.
Headquartered in Seoul, South Korea, HICO specializes in manufacturing electrical power equipment such as transformers, switchgear, flexible AC transmission systems and energy storage solutions. The company exports its products to customers around the globe and has established itself as one of the leading manufacturers in the power transformer business for the last 50 years.
Tennessee is home to more than 1,000 foreign-owned establishments that employ approximately 150,000 Tennesseans. Korea is among the top 10 countries for foreign investment in Tennessee, with Korean companies investing over $400 million in Tennessee since 2015.
SmileDirectClub announces 2,000 jobs in Nashville
Gov. Bill Lee announces a 2,000-job expansion by clear teeth aligner SmileDirectClub in Nashville on March 20, 2019. (Erik Schelzig, Tennessee Journal)
Gov. Bill Lee has announced clear teeth aligner SmileDirectClub will add more than 2,000 jobs in Nashville over the next five years. The new positions will be spread between the company’s downtown headquarters and other facilities in the Antioch community in southeast Davidson County.
There was no immediate word on the level of incentives offered to the company, which is spending $217 million on the expansion.
Here’s the full release from the Lee administration:
NASHVILLE, Tenn. – Tennessee Gov. Bill Lee, Department of Economic and Community Development Commissioner Bob Rolfe and SmileDirectClub officials announced today the company will invest $217 million to expand its headquarters and facilities in Middle Tennessee.
SmileDirectClub, the market leader and pioneer of doctor-directed, remote invisible aligner therapy, will create 2,010 new jobs in Nashville and Antioch over the next five years.
This is SmileDirectClub’s second expansion in Middle Tennessee in two years. In February 2017, the company announced a $4.5 million expansion across two Davidson County locations, which supported the creation of nearly 450 new jobs. Currently, SmileDirectClub employs more than 1,600 people in the Nashville area.
State paying $17.5M to New York firm for moving to Nashville — along with targeted tax break
The state Department of Economic and Community Development has agreed to give $17.5 million to AllianceBernstein for moving its headquarters from Manhattan to Nashville, reports the Nashville Business Journal. A bill approved by the legislature this year also gives the company a tax break that served to “sweeten” state support for the move, says the state’s ECD commissioner.
The Beacon Center of Tenessee, which has been crusading against “corporate welfare,” had urged that AllianceBernstein get nothing in the way of taxpayer-funded incentives. The global financal firm announced with Gov. Bill Haslam last month that it will bring 1,050 jobs to the state’s capitol city, investing about $70 million.
Megasite waste water dumping site relocated after vocal local opposition
After vocal opposition from residents in and around the Tipton County community of Randolph, located on the banks of the Mississippi River, state officials are withdrawing their current plans for the Memphis Regional Megasite’s 35-mile long wastewater pipeline, reports the Memphis Daily News.
TNECD hires representatives in France and Spain for total of 11 foreign recruiters
Press release from Department of Economic and Community Development
NASHVILLE – The Tennessee Department of Economic and Community (TNECD) has announced the addition of two international representatives for Spain and France that will focus on attracting new foreign direct investment (FDI) to Tennessee.
Haslam quip to Hagerty: Make Japanese crane TN official state bird
Bill Hagerty, former commissioner of the state Department of Economic and Community Development and now U.S. Ambassador to Japan, says Gov. Bill Haslam once joked about replacing the mockingbird with the crane as Tennessee’s official state bird, reports WKRN. The red-crowned crane is the official national bird of Japan.
ECD commissioner: Memphis Megasite needs another $72M in state funding
Economic and Community Development Commissioner Bob Rolfe says another $72 million in state funding is needed to complete work on the Memphis Regional Megasite, reports the Jackson Sun. That would push total state investment in the 4,100-acre site, so far unused, well past the $200 million mark.
State to spend another $2M on Megasite, seeking consultant to help
The state of Tennessee is asking for $2 million next year to whip the Memphis Regional Megasite into shape, a process that will include hiring an outside consultant to assess why the decade-long project hasn’t yet landed a major manufacturer, reports WPLN. The state has already spent about $140 million on the Megasite.
