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Green Energy Tax Credit

Eligibility 
Industrial
Maximum Rebate 

Green Energy Tax Credit: $1,500,000/tax year for $250 million in capital investment

Program Info
Start Date 

11/1/2009

State 
Tennessee
Program Type 
Industry Recruitment/Support
Rebate Amount 

The incentive is based on how much less the manufacturer pays for electricity than the maximum certified rate.

Provider 
Tennessee Department of Revenue

Tennessee provides tax credits to industries in the green energy supply chain that invest more than $250 million into the state. The Department of Revenue, Department of Economic and Community Development as well as the Department of Environment and Conservation are authorized to certify “green energy supply chain manufacturers” as eligible for the Green Energy Tax Credit. The $1.5 million maximum credit is applied to a company's Franchise and Excise Tax liability.

In addition to the Green Energy Tax Credit, the Carbon Tax Credit is available. This is the only carbon tax credit in the United States and it provides "certified green energy supply chain manufacturers" with financial protection against any potential price that may be placed on carbon emissions by future legislation. To learn more about these credits, which can be applied against the sum total of the taxes imposed by the Franchise Tax Law compiled in this part and the Excise Tax Law, [http://www.state.tn.us/revenue/taxguides/feguide.pdf see this guide].