In addition to having one of the nation’s lowest overall tax burdens, Jackson’s economic development partners offer exceptional incentives to relocating and expanding businesses. Our economic development team can help your business explore potential incentives that will help your business grow in West Tennessee. The state of Tennessee and local governing bodies evaluate eligibility on a case-by-case basis. Two of the reasons Jackson and West Tennessee are such great places for doing business are the business-friendly tax structure and incentive packages available for new and expanding industries.
State
In Tennessee, experience incentives designed specifically with your business in-mind. Lower operating costs reduce capital outlay and minimize risk. We know what it takes to earn your business. In Tennessee, we’re fostering economic growth with flexible tax credits, incentives and grants geared toward your investment. For more information on the competitive state incentives available, visit tnecd.com/advantages/incentives-grants.
Local Incentives
Real and Personal Property Tax Abatement
Manufacturing, distribution, call center or data center projects involving a significant capital investment and number of new jobs may qualify for Jackson-Madison County’s aggressive Payment in Lieu of Tax (PILOT) program. This program can enable a company to substantially reduce its tax burden during the critical early phases of operation. Companies are eligible to take advantage of the PILOT by entering into a lease-back arrangement with the Jackson Industrial Development Bond Board.
A PILOT is offered as an incentive to both new and expanding companies. It can apply to industrial real property, such as the land and building, as well as personal property, such as equipment. PILOTs are considered on a case-by-case basis and are based on an analysis of job creation, capital investment and wage rates.
Development of infrastructure and site preparation work required to make a site buildable; determined on a case-by-case basis.
Foreign Trade Zone 283
Industrial Parks located within Madison County have been designated as part of Foreign Trade Zone Number 283. This designation enables companies locating in those areas to receive equipment, raw materials, inventory and elements that might be added to the manufacturing or distribution process without paying federal duties until the finished product is sold. A duty is a federal tax generally charged on foreign trade items. This status enables companies locating in Jackson to take benefit from significant logistical and competitive advantages. Operation of the 10-area trade zone is overseen by the U.S. Border Patrol’s Memphis office.
TVA Valley Investment Initiative
The Valley Investment Initiative (VII) is an economic development incentive program jointly offered by TVA and participating distributors of TVA power. VII offers financial incentives to qualifying power customers who contribute to the economic development of the seven-state Tennessee Valley region and complement TVA’s power system resources. For more information, visit tvasites.com.
Local Tax
Type of Tax | City Rate | Country Rate |
Property Tax (per $100 value) | $1.97 | $2.35 |
Ratio of Assessment | ||
Residential | 25% | 25% |
Industrial | 40% | 40% |
Personal (equipment) | 30% | 30% |
Sales Tax: 9.75% (7% state tax, 2.75% local option tax) |
State Tax
Tennessee has the second lowest state and local tax burden per capita, and no income tax on wages.
Type of Tax | Rate |
Excise | 6.5% on the net earnings of the company derived from doing business in Tennessee |
Franchise | 0.25% of the greater of net worth or real and tangible property in Tennessee |
Sales | The sales tax rate on food is 5%. All other tangible personal property, unless specifically exempted, is 7%. |
Unemployment Insurance | The first $9,000 in wages paid to each employee are subject to this tax. The new employer premium rate for most industries, including manufacturing sector 31, is 2.7%. The rate is higher for construction (7.5%), mining and extraction (5.0%), manufacturing sector 32 (5.0%), and manufacturing sector 33 (6.5%). Minimum and maximum experience rates are 1.0% and 10.6%, respectively. |
Reliable Delivery. Customized Service. Competitive Cost. This is what industrial customers can expect in Jackson. A strong utility system is important to a community’s economic future. Jackson Energy Authority (JEA) and Tennessee Valley Authority (TVA) are major players in Jackson’s industrial and economic growth and in its ability to attract more jobs. JEA provides the necessary infrastructure of water, wastewater, electric and gas services so the community can grow. Through a variety of rate schedules and incentive programs, JEA can provide the utility service any industry needs at competitive costs. JEA’s administrative and technical staff assist commercial and industrial customers with utility site information, rate calculations, technical assistance and engineering expertise. Infrastructure is extremely important to companies as they decide where to expand and build new plants. JEA has a reputation for having a well-maintained utility system, long-term and reliable sources of supply and employees who know how to get the job done right. For rate information, visit jaxenergy.com/learning-center-articles/rates.
