What changes were made to the Brownfield Tax Credit during the 2020 legislative session?

Effective July 1, 2020, Public Chapter 606 makes various changes to Tennessee’s brownfield tax credit provisions. The new law removes the requirement that at least 5 acres of the brownfield property be utilized, and it expands eligibility for the credit to additional types of property. It also removes the $10 million per year cap on the total value of credits that may be awarded and removes a 75% enhanced credit for a $200 million capital investment.

The credit amount is 50% of the purchase price of brownfield property purchased in a tier 1 or tier 2 enhancement county and 75% in a tier 3 or 4 county. To qualify taxpayers must:

  • Make a capital investment of at least $25,000,000 in a tier 1 or 2 county; or
  • Make a capital investment of at least $5,000,000 in a tier 3 or 4 county.

Any unused credits may be carried forward 15 years.

Taxpayers must make the capital investment within the “investment period,” which is 5 years from the filing of a business plan. The business plan must explain the project and must be filed with the Department. Please contact Susan Amin in the Department’s Franchise and Excise Tax Division at (615) 532-6394 or susan.amin@tn.gov for more information on filing a business plan.

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