Tellico Incentives. Performance Incentives. Value Incentives. Amenity Incentives

Transcription

1 best value

2 Performance Incentives Fast track building permit approvals with no charge. Tax credit against Franchise Tax would be $4500 per job created. Value Incentives Local property taxes on the land starts when property is sold. Taxes could be deferred for several months if industry did not take immediate title. Goods in process, finished inventories, and goods in transit are exempt from property tax. Taxes on machinery, furniture, fixtures, and general equipment are based on a predetermined depreciation schedule. No state property tax, and no corporate state income tax. Tax credit against excise tax equal to 1% of purchase price of industrial machinery. Amenity Incentives Excellent golfing and other recreation associated with Tellico Lake. Numerous and reasonable housing options. Exempt from sales tax: Materials which become a part of the finished product. Industrial machinery which is used in the manufacturing of the product. Pollution control equipment. Energy and water that come in direct contact with the product during the manufacturing process and are separately metered are totally exempt. Other energy fuel and water used at the manufacturing facility are taxed at the reduced rate of 1.5%. Great public relation (advertising) image at Tellico Lake. A non-congested location with the services of a metropolitan area. A mild climate in the Southeastern United States provides for year round outdoor recreation. Tellico Lake offers exceptional recreation opportunities, including golfing, boating and fishing

3 Infrastructure Incentives Electric power and gas lines would be provided to the property line at no cost to the industry. Special service requirements by the industry subject to negotiations. Water and sewer lines would be provided to the property line at no cost to the industry. Location Incentives No transportation delays due to seasonal traffic congestion or weather Major highways serve site Modern and quality infrastructure support system specifically designed and sized for industry Service Incentives Onsite Professional Managed Conference Center Truck, rail and water transportation opportunities Onsite Medical clinic Onsite Fire station (Class 6) Onsite 24 hour ambulance service staffed by paramedic and emergency medical personnel Onsite services of State Employment Office Dual source water service available for fire flow emergencies Dual source 69kV electrical service option available Tellico offers a modern and quality infrastructure support system specifically designed and sized for industry

4 Tennessee Industrial Development Incentives FastTrack Job Training Assistance (FJTAP) This incentive is available to both new and expanding industry and begins with a company developing a training plan including the number of people to be hired, types of skills required and types of training needed. The plan is developed in conjunction with the FastTrack staff and is designed to be customizable and flexible. Companies will track costs associated with implementation of the training program, then submit to the state for reimbursement. Tennessee Job Skills (TJS) Similar to FJTAP, but with a focus on employers and industries which create high skill, high wage jobs in emerging, high-demand and technology focused sectors of the economy. Training staff will work with companies to develop a unique, flexible, comprehensive training plan which meets the company s initial training needs and will then follow up to insure each phase of the program meets the companies needs. Companies track costs and apply to the state for reimbursement. Reimbursement rates depend on the level of training and the types of instructors utilized. Job Based Training Reimbursement (JBT) A potentially faster program for reimbursement of training costs, companies may seek reimbursement from the state of Tennessee once a job creation commitment and cost per job is established. In order to qualify, companies must work with ECD to reach a contractual agreement which determines: The cost per job and the total commitment of jobs. Once agreed upon with ECD, companies can seek reimbursement of 50% of the cost per job within the first 90 days after the job is created and maintained. The remaining 50% can be claimed 180 days after the job is created and maintained. The company must agree to provide documentation, including the number of jobs created. Multi-year contracts between a company and ECD can be reached to accommodate multi-year job creation projects. If the total commitment of jobs is reached, companies may seek the entire training reimbursement allocation through JBT. Small Business Energy Loan Program provides low-interest loans of up to $300,000 to qualified Tennessee-based businesses to help upgrade the level of energy efficiency in their buildings, plants and manufacturing processes. Tennessee Job Skills work with companies to develop a comprehensive training plan that is eligible for reimbursement from the state

5 Tennessee Industrial Development Incentives Economic Development CDBG Program eligible economic development projects include grants for industrial infrastructure (similar to the FIDP program) and loans for industrial buildings and equipment. Projects are eligible for grants if they are in the public domain and available for use by a large segment of the community (i.e. infrastructure). CDBG assistance is in the form of a loan when the asset being financed is for the exclusive use of one industry (i.e. buildings and equipment). Small Business Energy Loan Program provides low-interest loans of up to $300,000 to qualified Tennessee-based businesses to help upgrade the level of energy efficiency in their buildings, plants and manufacturing processes. Tennessee Million Solar Roofs (MSR) This USDOE-sponsored initiative promotes the use of two solar technologies: photovoltaics (solar electric cells) that produce electricity from sunlight and solar thermal panels that produce heat for domestic hot water, space heating or heating swimming pools. The initiative establishes state and community partnerships that bring together business, government, the energy industry and community organizations to coordinate national and state resources and eliminate barriers to the use of solar energy. Wind Prospecting in The Tennessee Valley Region Wind Prospecting in The Tennessee Valley Region is a 2-year joint Tennessee Energy Policy Office, Tennessee Valley Authority and Appalachian State University project funded by the US Department of Energy. The purpose of the project is to assess the wind generating potential of various high altitude sites in eastern Tennessee. Green Island Corridor Grant administered by the Tennessee Department of Transportation, assists retail vehicle fuel stations and farm co-ops with up to 80% of the cost to convert or install storage and fuel dispensing equipment for E85 and B20 pumps, with a cap of $45,000 per pump. This program is working to establish a statewide network of E85 and B20 pumps alongside interstate and major highway corridors to make these fuels available to citizens, travelers and fleets. BERO Rural Micro Loan The ECD-BERO Rural Micro Loan Fund is designed to encourage job creation and provide access to capital to existing and potential entrepreneurs to support their growth and expansion. Start-up financing for the ECD-BERO Rural Micro Loan Fund was secured from the USDA Rural Development rural business enterprise grant (RBEG) program. Micro loan funds of $500-$10,000 are available for use by entrepreneurs living and operating a business in rural Tennessee. A microenterprise is defined as a for-profit entity with five or fewer employees, one of whom owns the business. Fixed assets and working capital loans are accepted, and the maximum loan amount is $10,000. Tennessee Job Skills is a discretionary fund available to new and existing businesses to train their workforce. The focus is on employers and industries that promote highskill, high-wage jobs for emerging and high-technology manufacturing operations. Industrial Development Board Bonds are available to companies for infrastructure improvements. Funds must be applied for from the state by local industrial development boards, and are distributed locally by those boards at their discretion. Industrial Development Board Bonds are available to companies for infrastructure improvements

6 Affordable Taxes Loudon and Monroe Counties offer some of the lowest tax rates in the Knoxville-Oak Ridge Innovation Valley region. There is no state or local income tax on wages and salaries. Tennessee has been long considered a state with one of the most business friendly-economic climates in the nation. Tellico West Industrial Properties is located within the city of Vonore and has a Monroe County tax rate of $1.58 per $ of assessed value and a Vonore city tax rate of $.3755 per $ of assessed value. Tellico Regional Business Park in Loudon County has a tax rate of $1.58 per $ value. Land and buildings are taxed at 40% and personal property is taxed at 30%. Corporate Excise Tax Tennessee levies an annual excise tax of 6.5% on net income of corporations from business conducted in the state. The corporation s federal taxable income before net operating loss deduction and special deductions is used with certain state adjustments. Incentives: Tax credit of 1% of purchase price of machinery used in manufacturing and qualified machinery used in warehousing and distribution. Net operating loss carries forward 15 years. All capital losses can be claimed in the year incurred. Personal Income Tax: There is no state or local income tax on wages and salaries. Sales and Use Tax: State and local sales taxes are levied on tangible personal property purchased or leased in Tennessee, except items purchased for resale. Taxable services, as defined under the law, are subject to sales tax. State Sales Tax: 7% Monroe County Sales Tax: 2.25% Exemptions and Incentives: Industrial machinery used in the manufacture of the product is exempt. Repairs to industrial machinery are exempt. Materials, which become a part of the finished product, are exempt. Qualified machinery used in warehousing/distribution is exempt. Energy and water that come in direct contact with the product during the Manufacturing process that are separately metered are totally exempt. Other energy fuel and water used at the manufacturing facility are taxed at the reduced rate of 1.5%. Local sales tax is 7% on total purchase, plus 2.25% local sales tax on $1600 of the item. There will be an additional 2.75% tax on the amount of the item over $1,600 but not more than $3,200 or up to $44 per item. Tennessee has one of the most business-friendly economic climates in the region

7 Local Taxes Tellico West Industrial Properties Estimate of Local Taxes Property Tax The Monroe County and Loudon County tax rates are $1.58 per $100 of assessed value. The city of Vonore s tax rate is $ per $100 of assessed value. Assessment Ratio % Industrial & Commercial Real Property (land & building) 40 Industrial & Commercial Personal Property (machinery & equipment) 30 Residential & Farm Property 25 Computation example: Market value of land & building Multiply by 40% Divide by $100 Apply Monroe County tax rate ($1.58) or Loudon County tax of $1.58 per 100 value. Apply City of Vonore tax rate ($0.3755) Market value of machinery & equipment Multiply by 30% Divide by $100 Apply Monroe County or Loudon County tax rate ($1.58) Apply City of Vonore tax rate ($0.3755) if in Monroe County Local tax bill There are no local taxes on finished goods inventory, goods in transit or goods in process. The following depreciation schedule applies to tangible personal property on hand: End of Year Depreciation Schedule and Beyond.20 Sales and Use Tax State and local sales taxes are levied on the purchase or lease price of tangible personal property purchased or leased in Tennessee, except items purchased for resale. Taxable services, as defined under the law, are subject to sales tax. State Sales Tax: 7% Monroe County Sales Tax: 2.25% Unemployment Tax The first $7,000 in employment wages are taxed at the rate of 2.7%. After three calendar years, the employer is assigned a tax rate based on experience. Tennessee unemployment compensation taxes serve as a credit against federal unemployment taxes owed. Workers Compensation Premium rates vary by occupational categories. Premium = rate x employee earnings. The premium rate for clerical workers is $0.41 per $100 of earnings and for warehouse/distribution it is $5.69 per $100 of earnings. There are no local taxes on finished goods inventory, goods in transit or goods in process