Tennessee · Jobs · TN-JTC-001
Job Tax Credit
Publication revised September 24, 2026. Sourcebook page 254.
Credit amount / calculation
Generally $4,500 per qualifying job; standard threshold is 25 jobs within 36 months and $500,000 of capital investment.
Business fit and eligible activity
Manufacturers investing and creating qualifying jobs can receive a per-job franchise/excise credit. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
This is a hiring credit, not an equipment credit. It becomes interesting only when the planned headcount clears the program threshold and the new jobs satisfy wage, hours, location, and retention rules. A logging contractor should confirm that its industry or work location is within the eligible class before counting the jobs. Hiring before the required certification or reservation can jeopardize the credit.
Illustrative business benefit
An eligible project invests at least $500,000 and adds 25 qualifying jobs: 25 x $4,500 = $112,500 before use limits. A six-job project does not meet the standard threshold; special county rules must be checked separately.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
- State of Tennessee — Job Tax Credit (tn.gov)
Related programs
Enhanced Job Tax Credit
per-job benefit based on county tier
Projects in designated enhancement counties can receive additional per-job credits and lower thresholds.
Industrial Machinery Tax Credit
Generally
Foundational manufacturing credit for qualified industrial machinery.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
Potentially relevant when a forest-products facility owns qualifying zero-emission generation or energy-storage property.
Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Credit for Increasing Research Activities (Internal Revenue Code §41)
Regular research-credit method
A sawmill, secondary manufacturer or biomass business can qualify when it performs genuine technological experimentation to improve a product or process.