Tennessee Schedule X - Franchise Tax Jobs Credit Computation

Schedule X - Franchise Tax Jobs Credit Computation
Schedule X
RV-F1402401 (12/22)

Taxable Year

Taxpayer Name

Account No./FEIN

Schedule X - Franchise and Excise Tax Job Credit Computation
Part 1 - Standard Job Tax Credit
	 1.	 New Tennessee  jobs created and filled during the current fiscal year..............................(1)	
	 2.	 Job Tax Credit from jobs created (multiply Line 1 by $4,500) ..............................................(2)	
	 3.	 New Tennessee jobs created and filled during the current fiscal year by a taxpayer
	
	 that qualifies for the higher level of investment and job creation credit under the
	
	 provisions of Tenn. Code Ann. § 67-4-2109(b)(3)(A)...............................................................(3)	
	 4.	 Job Tax Credit from jobs created (multiply Line 3 by $5,000)...............................................(4)	
	 5.	 Job Tax Credit carryover from prior years...............................................................................(5)	
	 6.	 Total standard Job Tax Credit available (add Lines 2, 4, and 5) ...........................................(6)	
	 7.	 Total franchise and excise taxes (add Schedule A, Line 3 and Schedule B, Line 5)............(7)	
	 8.	 Limitation percentage (50% for periods ending on or after July 1, 2009)...........................(8)	
	 9.	 Multiply Line 7 by Line 8............................................................................................................(9)	
	 10.	 Total before Part 5 limitation (enter the smaller value of Lines 6 or 9 here, and on
	
	 Part 5, Line 40)......................................................................................................................... (10)	
Part 2 - Additional Annual Credit
	 11.	 Jobs qualifying for additional annual credit in Tier 2, Tier 3, and Tier 4 Enhancement
	
	 Counties.................................................................................................................................... (11)	
	 12.	 Additional Annual Credit - Enhancement Counties (multiply Line 11 by $4,500)............ (12)	
	 13.	 Jobs qualifying for additional credit based on a higher level of investment and job
	
	 creation .................................................................................................................................... (13)	
	 14.	 Additional Annual Credit - Higher Investment Level (multiply Line 13 by $5,000) ......... (14)	
	 15.	 Jobs qualifying for additional credit based on an Adventure Tourism Zone................... (15)	
	 16.	 Additional Annual Credit - Adventure Tourism Zone (multiply Line 15 by $4,500) ........ (16)	
	 17.	 Total Additional Annual Credit (add Lines 12, 14, and 16; enter here and on
	
	 Part 5, Line 37)......................................................................................................................... (17)	

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Part 3 - Job Tax Credit for Hiring Persons with Disabilities
	 18.	 New full-time Tennessee jobs created and filled during the current fiscal year by
	
	 qualified persons with disabilities......................................................................................... (18)	
	 19.	 Job Tax Credit from jobs created (multiply Line 18 by $5,000).......................................... (19)	
	 20.	 New part-time Tennessee jobs created and filled during the current fiscal year by
	
	 qualified persons with disabilities......................................................................................... (20)	
	 21.	 Job Tax Credit from jobs created (multiply Line 20 by $2,000).......................................... (21)	
	 22.	 Job Tax Credit for hiring persons with disabilities carryover from prior years................ (22)	
	 23.	 Total Job Tax Credit for hiring persons with disabilities  available (add Lines 19, 21,
		 and 22) ..................................................................................................................................... (23)	
	 24.	 Total franchise and excise taxes (add Schedule A, Line 3 and Schedule B, Line 5)......... (24)	
	 25.	 Limitation (50% of Line 24)..................................................................................................... (25)	
	 26.	 Total before Part 5 limitation (enter the smaller value of Lines 23 or 25 here, and on
	
	 Part 5, Line 41)......................................................................................................................... (26)	

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Taxable Year

Taxpayer Name

Account No./FEIN

Part 4 - Community Resurgence Job Tax Credit
	 27.	 New Tennessee jobs created and filled during the current fiscal year in

	
	 high-poverty area ................................................................................................................... (27)	
	 28.	 Job Tax Credit from jobs created (multiply Line 27 by $2,500).......................................... (28)	
	 29.	 Community Resurgence Job Tax Credit carryover from prior years................................. (29)	
	 30.	 Total Community Resurgence Job Tax Credit available (add Lines 28 and 29)  .............. (30)	
	 31.	 Total franchise and excise taxes (add Schedule A, Line 3 and Schedule B, Line 5)......... (31)	
	 32.	 Limitation (50% of Line 31)..................................................................................................... (32)	
	 33.	 Total before Part 5 limitation (enter the smaller value of Lines 30 or 32 here, and on  
	
	 Part 5, Line 42)......................................................................................................................... (33)	

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Part 5 - Calculation of Overall Limitation
34.	 Total franchise and excise taxes (add Schedule A, Line 3 and Schedule B, Line 5)......... (34)	
	 35.	 Credits from Schedule D, Line 1 ........................................................................................... (35)	
	 36.	 Net tax after Gross Premiums Tax Credits (subtract Line 35 from
	
	 Line 34; if negative, enter zero)............................................................................................. (36)	
	 37.	 Additional Annual Credit (from Part 2, Line 17)................................................................... (37)	
	 38.	 Total Additional Annual Credit allowable in current year (enter the smaller value of Line
	
	 36 or 37 here, and on FAE170, Schedule D, Line 7 or FAE174, Schedule D, Line 7) ....... (38)	
	 39.	 Tax liability after Gross Premiums and Additional Annual
	
	 Credits (subtract Line 38 from Line 36) ............................................................................... (39)	
	 40.	 Standard Job Tax Credit (Part 1, Line 10).............................................................................. (40)	
	 41.	 Job Tax Credit for hiring persons with disabilities (Part 3, Line 26)................................... (41)	
	 42.	 Community Resurgence Job Tax Credit (Part 4, Line 33).................................................... (42)	
	 43.	 Total job credits with carryover provision (add Lines 40 through 42).............................. (43)	
	 44.	 Credits from FAE170, Schedule D, Lines 2,3,4, and 5
	
	 or FAE174, Schedule D, Lines 2,3,4, and 5 ........................................................................... (44)	
	 45.	 Net tax after other credits (subtract Line 44 from Line 39; if negative, enter zero)........ (45)	
	 46.	 Total job tax credits allowable in current year excluding Additional Annual Credit
	
	 claimed on Line 38 above (enter the smaller value of Line 43 or 45 here, and on
	
	 FAE170, Schedule D, Line 6 or FAE174 Schedule D, Line 6)................................................ (46)	
	

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Part 6 - Supplemental Information
	 a.	 Business plan control number.................................................................................................(a)	 ____________________________
	 b.	 Total full-time Tennessee jobs at the beginning of the tax year......................................... (b)	 ____________________________ 	
	 c.	 Total full-time Tennessee jobs at the end of the tax year.....................................................(c)	 ____________________________

Account No./FEIN

Taxpayer Name

Taxable Year

Job Tax Credit Carryover
Check applicable carryover type:
If more than one type applies, attach additional pages.  Unused Additional Annual Credit cannot be carried forward.
Standard Job Tax Credit
Job Tax Credit for hiring persons with disabilities
Community Resurgence Job Tax Credit
	
	
	
	
	 Year	
1

Period	
Ended	
MM/YY	

Original	
Return or	
as Amended	

	
Used in	
Prior Year(s)	

	
	
Expired	

2
3
4
5
6
7
8
9
10
11
12
13
14
15
	 Amount to carry to Schedule X............................................................................................................

Job Tax Credit
Carryover
Available

Schedule X - Franchise and Excise Tax Job Credit Computation
Instructions:
General Information
	 ·	 Prior approval is required for this credit.  In order to receive approval, the taxpayer must file a Job Tax Credit Business
Plan or a Job Tax Credit for Hiring Persons with Disabilities Business Plan.  Provided all requirements are met, the
taxpayer will be issued a control number.  
General Requirements - Standard Job Tax Credit
	 ·	 In order to qualify for the standard Job Tax Credit the taxpayer must be a Qualified Business Enterprise as defined
in Tenn. Code Ann. Section 67-4-2109(a)(5).  Generally, in order to be a Qualified Business Enterprise the taxpayer
must be engaged in manufacturing, warehousing and distribution, processing tangible personal property, research
and development, computer services, call centers, headquarters facilities, as defined in Tenn. Code Ann. Section
67-6-224(b), back office operations, convention or trade show facilities, or a tourism related business.  
	 ·	 In order to qualify for the standard Job Tax Credit a capital investment of at least $500,000 must be made within
the Investment Period.   
	 ·	 In order to qualify for the standard Job Tax Credit a minimum number of net new full-time Tennessee jobs must
be created and filled within the Investment Period.  The minimum job requirement in a Tier 1 or Tier 2 county is 25
net new jobs.  The minimum job requirement is 20 net new Jobs in a Tier 3 county and 10 in a Tier 4 county.
General Requirements - Additional Annual Credit
	 ·	 In order to qualify for any of the three Additional Annual Credits the taxpayer must meet all the requirements of
the Standard Job Tax Credit.
	 ·	 An additional annual credit is available for qualified jobs created in Tier 2, Tier 3 and Tier 4 counties.  See Tenn.
Code Ann. Section 67-4-2109(b)(2)(A).
	 ·	 An additional annual credit is available for large investments and higher level of job creation.  This credit requires
an investment of at least one-hundred million dollars ($100,000,000) and the creation of at least one-hundred (100)
qualified jobs that pay at least the state's average occupational wage, or in the case of a headquarters facility an
investment of ten million dollars ($10,000,000) and the creation of at least one-hundred (100) qualified jobs that
pay at least 150% the state's average occupational wage.  See Tenn. Code Ann. Section 67-4-2109(b)(2)(B).
	 ·	 An additional annual credit is available for qualified jobs created in an Adventure Tourism Zone.  See Tenn. Code
Ann. Section 67-4-2109(b)(2)(C).
	 ·	 This credit can be used to offset up to 100% of the franchise and excise tax.  However, any unused credit cannot
be applied to other tax years.
General Requirements - Job Tax Credit for Hiring Persons with Disabilities
	 ·	 In order to qualify for the Job Tax Credit for Hiring Persons with Disabilities the taxpayer must hire workers with
disabilities through an existing State of Tennessee employment incentive program.  In order to qualify for the $5,000
credit, the employee must work full-time and be covered by the employer's health care plan.  In order to qualify for
the $2,000 credit, the employee must work at least 10 hours per week.  Employees who work full-time, but are not
covered by the employer's health care plan are treated the same as part-time employees for the purpose of this
credit.  See Tenn. Code Ann. Section 67-4-2109(f)(2).
	 ·	 There is no investment or minimum number of jobs required for this credit.
General Requirements - Community Resurgence Job Tax Credit
	 ·	 In order to qualify for the Community Resurgence Job Tax Credit the taxpayer must create at least 10 full-time jobs
in a high-poverty area with wages equal to, or greater than, the state's average occupational wage.  A list of census
tracts that meet the definition of high-poverty areas is provided by the Tennessee Department of Economic and
Community Development.
	 ·	 There is no investment requirement for this credit.  See Tenn. Code Ann. Section 67-4-2109(q).
Line by Line Instructions
Part 1 - Standard Job Tax Credit
Line 1	 Enter the number of net new qualified full-time Tennessee jobs created and filled during the current fiscal year that
meet all statutory requirements for the credit at the rate of $4,500 per job.  Taxpayers that qualify for the higher
level of investment and job creation additional annual credit should not enter any jobs on this line, but instead
should report all jobs on line 3.  The jobs receiving the additional annual credit will receive credit at the rate of
$5,000 per job under the provisions of Tenn. Code Ann. Section 67-4-2109(b)(3)(A).
Line 2	 Multiply the number on Line 1 by $4,500.
Line 3 	 Enter the number of net new full-time Tennessee jobs created and filled during the current fiscal year by a taxpayer
that qualifies for the additional annual credit for higher level of investment and job creation under the provisions
of Tenn. Code Ann. Section 67-4-2109(b)(2)(B). Taxpayers that qualify for this additional annual credit should enter
all new jobs on this line, and taxpayers that do not qualify for the additional annual credit should enter all new
jobs on Line 1.

Line 4 	
Line 5 	
Line 6	
Line 7	

Multiply the number on Line 3 by $5,000.
Enter the Job Tax Credit carryover amount from the last page of this schedule.
Add the amounts from Lines 2, 4, and 5.
Enter the total Franchise and Excise taxes shown on page one of the return, before credits or payments have been
deducted.   Schedule A, Line 3 plus Schedule B, Line 5.
Line 8	 Enter the limitation percentage.  The limitation percentage is 50% for periods ended on or after July 1, 2009 unless
the Commissioner of Revenue and the Commissioner of Economic and Community Development have determined
that it is in the best interests of the state to allow a higher percentage and  issued the taxpayer a letter stating such
under the provisions of Tenn. Code Ann. Section 67-4-2109(b)(3)(F).
Line 9	 Multiply Line 7 by Line 8.
Line 10	Enter the lesser of Lines 6 and 9.  Also enter this amount on Part 5, Line 40.
Part 2 - Additional Annual Credit
Line 11	Enter the number of jobs qualifying for the additional annual credit in Tier 2, Tier 3, and Tier 4 Enhancement
Counties.  Do not include any jobs on this line that are included in Line 13 or 15.  See Tenn. Code Ann. Section 674-2109(b)(2)(A) for further information.
Line 12	Multiply the number on Line 11 by $4,500.
Line 13	Enter the number of jobs qualifying for the additional annual credit based on a higher level of investment and job
creation under the provisions of Tenn. Code Ann. Section 67-4-2109(b)(2)(B).  Do not include any jobs on this line
that are included in Line 11 or 15.
Line 14	Multiply the number on Line 13 by $5,000.
Line 15	Enter the number of jobs qualifying for the additional annual credit in an Adventure Tourism Zone.  Do not include
any jobs on this line that are included in Line 11 or 13.  See Tenn. Code Ann. Section 67-4-2109(b)(2)(C) for further
information.
Line 16	Multiply the number on Line 15 by $4,500.
Line 17	Add Lines 12, 14, and 16.  Also enter this amount on Part 5, Line 37.  The additional annual credit calculated in Part
2 can be used to offset up to 100% of the current year Franchise and Excise tax liability.  Any remaining additional
annual credit is not refundable and cannot be carried forward.
Part 3 - Job Tax Credit for Hiring Persons with Disabilities
Line 18	Enter the number of net new full-time Tennessee jobs created and filled by persons with disabilities during the
current fiscal year.  Only include employees for whom health insurance is provided.  If health insurance is not
provided, the job should be claimed on Line 20.
Line 19	Multiply the number on Line 18 by $5,000.
Line 20	Enter the number of net new part-time Tennessee jobs created and filled by persons with disabilities during the
current fiscal year.  Include full-time employees with disabilities for whom health insurance is not provided.
Line 21	Multiply the number on Line 20 by $2,000.
Line 22	Enter the Job Tax Credit for Hiring Persons with Disabilities carryover from the last page of this schedule.
Line 23	Add the amounts from Lines 19, 21, and 22.
Line 24	Enter the total Franchise and Excise taxes shown on page one of the return, before credits or payments have been
deducted.   Schedule A, Line 3 plus Schedule B, Line 5.
Line 25	Enter the limitation.  The limitation is 50% of Line 24.
Line 26	Enter the lesser of Lines 23 and 25.  Also enter this amount on Part 5, Line 41.
Part 4 - Community Resurgence Job Tax Credit
Line 27	Enter the number of net new qualified Tennessee jobs created and filled during the current fiscal year in a highpoverty area.  
Line 28	Multiply the number on Line 27 by $2,500.
Line 29	Enter the Community Resurgence Job Tax Credit carryover from the last page of this schedule.
Line 30	Add the amounts from Lines 28 and 29.
Line 31	Enter the total Franchise and Excise taxes shown on page one of the return, before credits or payments have been
deducted.
Line 32	Enter the limitation.  The limitation is 50% of Line 31.
Line 33	Enter the lesser of Lines 30 and 32.  Also enter this amount on Part 5, Line 42.

Part 5 - Calculation of Overall Limitation
Line 34	Enter the total Franchise and Excise taxes shown on page one of the return, before credits or payments have been
deducted.   Schedule A, Line 3 plus Schedule B, Line 5.
Line 35	Enter the sum of Gross Premiums Tax credit claimed on Schedule D, Line 1.
Line 36	Subtract Line 35 from Line 34; if negative, enter zero.
Line 37	Enter the total Additional Annual Credit from Part 2, Line 17.
Line 38	Enter the lesser of Line 36 and 37.  Also enter this amount on FAE170, Schedule D, Line 7 or FAE174, Schedule D,
Line 7.  This is the total amount of Additional Annual Credit that can be deducted on this return.
Line 39	Subtract Line 38 from Line 36.  
Line 40	Enter the Standard Job Tax Credit from Part 1, Line 10.
Line 41	Enter the Job Tax Credit for Hiring Persons with Disabilities from Part 3, Line 26.
Line 42 Enter the Community Resurgence Job Tax Credit from Part 4, Line 33.
Line 43	Enter the sum of lines 40 through 42.
Line 44	Enter the sum of all credits claimed on FAE170, Schedule D, Lines 2,3,4, and 5 or FAE174, Schedule D, Lines
	 	
2, 3, 4 and 5.   Industrial Machinery and Job Tax Credits are applied last since they have the longest carryover period
and it is usually in the taxpayer’s best interest to apply the other credits first.
Line 45	Subtract Line 44 from Line 39.  If negative, enter 0.
Line 46	Enter the lesser of Lines 43 and 45.  Also enter this amount on FAE170, Schedule D, Line 6 or FAE174 Schedule D,
Line 6.
Part 6 - Supplemental Information
Line a	 Enter the control number received from the Department of Revenue.  If more than one control number has been
received, enter the most recent number.
Line b	 Enter the number of full-time Tennessee jobs that existed at the beginning of the period covered by this return.
Line c	 Enter the number of full-time Tennessee jobs that existed at the end of the period covered by this return.