Franchise & Excise Tax - Excise Tax

All persons, except those with nonprofit status or otherwise exempt, are subject to a 6.5% corporate excise tax on the net earnings from business conducted in Tennessee for the fiscal year. Please view the topics below for more information.

• ET-1 - Excise Tax Computation
• ET-2 - Federal Bonus Depreciation may be Deducted for Excise Tax
• ET-3 - Federal Section 179 Depreciation is Deducted for Excise Tax
• ET-4 - Interest Expense Limitation of I.R.C. 163(j) in Relation to the Excise Tax
• ET-5 - Deductible Business Interest Expense Carried Forward from Tax Years 2018 and 2019
• ET-6 - Implications of the 2020 CARES Act on the Excise Tax
• ET-7 - Payments Received under the Tennessee Business Relief Program or the Supplemental Employer Recovery Grant Program
• ET-8 - Excise Tax Adjustment When Earnings Subject to Self Employment Tax Include IRC 179 Expense
• ET-9 - Limitation on Deduction for Real Estate Rent Paid to an Affiliate
• ET-10 - TN Decoupled from TCJA Provisions Concerning Certain State and Local Tax Incentives and Grants through I.R.C. § 118
• ET-11 - Intangible Expense Paid to Affiliate Disclosure
• ET-12 – Forgiven Federal Paycheck Protection Program (PPP) Loan Proceeds Not Subject to Tennessee Excise Tax and Expenses are Deductible
• ET-13 – Venture Capital Fund Exemption