ET-3 - Federal Section 179 Depreciation is Deducted for Excise Tax

Internal Revenue Code (IRC) Section 179 depreciation expense may be deducted for Tennessee excise tax purposes to the same extent that it was deducted on the corresponding federal income tax return.  See the Department’s Franchise and Excise Tax Manual for more information on the IRC § 179 deduction. 

Note: This article was updated on May 16, 2023, as a result of a law change. The previous version of ET-3 is available here.