A new franchise and excise tax credit program in Tennessee is aiming to help create jobs and economic development throughout the state’s entertainment industry.
According to a release from the Tennessee Department of Economic and Community Development (TNECD), the initiative will allow certain companies to apply for a tax credit based on “resident and non-resident Tennessee payroll expenses” and “apply for a point of purchase sales tax exemption.”
The program was started through a partnership between TNECD, Tennessee Entertainment Commission (TEC), and Department of Revenue.
“Tennessee is home to one of the most robust entertainment industries in the world, and we strive to provide the resources needed for our state to build upon this momentum,” TNECD Commissioner Bob Rolfe said. “We are proud to partner with the Department of Revenue and Tennessee Entertainment Commission and look forward to seeing how this new program will further strengthen our state’s entertainment footprint while creating additional jobs for Tennesseans.”
Those eligible for the program range from feature films to video game developments.
In addition to the tax credit, those eligible may also take advantage of a point-of-purchase sales and use tax exemption on specific goods, which could save them more than nine percent.
“We appreciate the opportunity to work with the Tennessee Entertainment Commission, the Tennessee Department of Economic and Community Development, and the entertainment industry to make this incentive a success,” Revenue Commissioner David Gerregano said. “Through this collaboration, we are happy to support the continued growth of Tennessee’s entertainment industry.”
According to the group, the idea will allow the entertainment industry to grow and allow the state to market itself.
“Incentives play a pivotal role in the development of talent, workforce and infrastructure in the entertainment industry,” TEC Executive Director Bob Raines said. “The Tennessee Entertainment Commission continues to work toward dedicated and intentional strategies that reinforce and retain our creative class.”
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Cooper Moran is a reporter for The Tennessee Star and The Star News Network. Email tips to [email protected]
Photo “Bob Rolfe” by Tennessee Department of Economic and Community Development. Background Photo “Tennessee State Capitol” by FaceMePLS. CC BY 2.0.