Where in Tennessee law can the FONCE exemption be found? Please see Tenn. Code. Ann. Section 67-4-2008(a)(11). September 09, 2015 19:23 Related articles What are the qualifications for the FONCE exemption? Will I have to apply for a FONCE exemption every year? What will the Department of Revenue do with the information I provide for the FONCE exemption? Do gains from the sale of real or tangible personal property qualify as passive investment income? Can my entity qualify as a FONCE if it has not generated any income?