The bottler's tax rate of 1.9% is comprised of a 1.5% soft drink portion and a 0.4% litter portion. The credit for franchise and excise tax paid can only apply to the 1.5% soft drink portion of the tax. The litter portion of the tax cannot be reduced or eliminated by the credit. Therefore, the credit may only be applied against 78.95% (1.5 / 1.9) of the bottler's tax liability.
Reference: Tenn. Code Ann. 67-4-402(d).