Tennessee Franchise and Excise Tax Return Kit

Franchise and Excise Tax Return Kit
FAE170 - Franchise & Excise Tax Return - For tax periods beginning January 1, 2023 and after
RV-R0011001 (12/23)

TENNESSEE DEPARTMENT OF REVENUE
2023 Franchise and Excise Tax Return

FAE
170

Tax Year Beginning

Account Number

Tax Year Ending

FEIN

NAICS

SOS Control Number

Check all that apply:
a)	 Amended return
b)	 Final return

Legal Name

c)	 Public Law 86-272 applied to excise tax
d)	 Taxpayer has made an election to
calculate net worth per the provisions of
Tenn. Code Ann. § 67-4-2103(g)-(i)
e)	 Taxpayer has filed the prescribed form
to revoke its election made per Tenn.
Code Ann. § 67-4-2103(g)-(i)
f)	 Annualized income installment method
for quarterly estimates election

Mailing Address

g)	 Manufacturer single sales factor election
City

h)	 Revoke manufacturer single sales factor
election
i)  Taxpayer has filed for federal extension

State

ZIP Code

j) Triple weighted sales election
k)  Telecom Qualified Member
Date Tennessee operations began (see instructions)

Schedule A ‑ Computation of Franchise Tax
	
	
	
	
	
	
	
	

Round to the nearest dollar

1. 	Total net worth Schedule F1, Line 5 or Schedule F2, Line 3 ........................................................................................ (1)	 _______________________________________
2.	 Total real and tangible personal property from Schedule G, Line 15......................................................................... (2)	 _______________________________________
3.	 Franchise tax (25¢ per $100 or major fraction thereof on the greater of Lines 1 or 2; minimum $100) .............. (3)	 _______________________________________

Schedule B ‑ Computation of Excise Tax
4.	 Income subject to excise tax from Schedule J, Line 36................................................................................................. (4)	
5. 	Excise tax (6.5% of Line 4) ............................................................................................................................................... (5)	
6.	 Recapture of tax credit (Schedule T, Line 13) and additional excise tax on certified distribution sales............... (6)	
7.	 Total excise tax due (add Lines 5 and 6) ........................................................................................................................ (7)	

_______________________________________
_______________________________________
_______________________________________ 	
_______________________________________

Schedule C ‑ Computation of Total Tax Due or Overpayment
	

	 8.	 Total franchise and excise taxes (add Lines 3 and 7).............................................................. 	(8)	
_______________________________________
	 9.	 Total credit from Schedule D, Line 10 (cannot exceed Schedule C, Line 8)......................... 	(9)	
_______________________________________
	 10.	 Net tax (subtract Line 9 from Line 8; if Line 9 exceeds Line 8, enter zero here)................. 	(10)	
_______________________________________
	 11.	 Total payments from Schedule E, Line 7.................................................................................. 	(11)	
_______________________________________
	 12.	 Penalty (see instructions) .......................................................................................................... 	(12)	
_______________________________________
	 13.	 Interest (see instructions) .............................................................................................................................................. (13)	 _______________________________________
	 14.	 Penalty on estimated franchise and excise tax payments ........................................................................................ (14)	 _______________________________________
	 15.	 Interest on estimated franchise and excise tax payments ....................................................................................... (15)	 _______________________________________
	 16.	 Total amount due (overpaid) (add Lines 10, 12, 13, 14, and 15, subtract Line 11) ................................................. (16)	 _______________________________________
		 If overpayment reported on Line 16, complete A and/or B below:
	 A. Credit to next year’s tax $_______________________________________	 B. Refund $________________________________
penalties of perjury, I declare that I have examined this report, and to the best of my knowledge
Power of Attorney - Check YES if this taxpayer's Under
and belief, it is true, correct, and complete.
signature certifies that this tax preparer has
the authority to execute this form on behalf
Title
Date
Taxpayer's Signature
of the taxpayer and is authorized to receive
and inspect confidential tax information
Date
Telephone
Preparer's PTIN
and to perform any and all acts relating to Tax Preparer's Signature
respective tax matters.	
	
City
Preparer's Address
ZIP Code
State
YES
Preparer's Email Address

FOR OFFICE USE ONLY

page 2

Taxable Year

Account No./FEIN

Taxpayer Name

Schedule D - Schedule of Credits
	 1.	 Gross Premiums Tax Credit (cannot exceed Schedule C, Line 8)........................................................................................(1)	 __________________________________
	 2.	 Green Energy Tax Credit from business plans filed prior to July 1, 2015...........................................................................(2)	 __________________________________
	 3.	 Brownfield Property Credits ...................................................................................................................................................(3)	 __________________________________
	 4.	 Broadband Internet Access Tax Credit carryover for service providers............................................................................(4)	 __________________________________
	 5.	 Industrial Machinery and Research and Development Tax Credit from Schedule T, Line 11.........................................(5)	 __________________________________
	 6.	 Job Tax Credit from Schedule X, Line 46.................................................................................................................................(6)	 __________________________________
	 7.	 Additional Annual Job Tax Credit from Schedule X, Line 38................................................................................................(7)	 __________________________________
   8.    Qualified Production Credit from Schedule QP, Line 12...................................................................................................... (8)  _________________________________
9.	 Employer Credit for Paid Family and Medical Leave from Schedule PL.............................................................................(9)	_________________________________
10. Total credit (add Lines 1 through 9; enter here and on Schedule C, Line 9)................................................................... (10)	 __________________________________

Schedule E - Schedule of Required Quarterly Installments and Payments

Required Quarterly Installments

Amount Paid

	 1.	 Overpayment from previous year, if available................................................................................................................. 	(1)__________________________________
	
	
	
	
	
	

2.	
3.	
4.	
5.	
6.	
7.	

First quarterly estimate............................................................................................... (2a)	 ____________________________ 	(2b)_________________________________
Second quarterly estimate.......................................................................................... (3a)	 ____________________________ 	(3b)_________________________________
Third quarterly estimate.............................................................................................. (4a)	 ____________________________ 	(4b)_________________________________
Fourth quarterly estimate........................................................................................... (5a)	 ____________________________ 	(5b)_________________________________
Extension payment.............................................................................................................................................................. 	(6)__________________________________
Total payments (add Lines 1 through 6; enter here and on Schedule C, Line 11)....................................................... 	(7)__________________________________

Computation of Franchise Tax
Schedule F1 - Non-Consolidated Net Worth
	
	
	
	
	

1.	
2.	
3.	
4.	
5.	

Net worth (total assets less total liabilities)............................................................................................................................(1)	
Indebtedness to or guaranteed by parent or affiliated corporation (cannot be a deduction).........................................(2)	
Total (add Lines 1 and 2)...........................................................................................................................................................(3)	
Franchise tax apportionment ratio (Schedules N, N1, O, P, R or S if applicable or 100%)................................................(4)	
Total (multiply Line 3 by Line 4; enter here and on Schedule A, Line 1)..............................................................................(5)	

_________________________________
_________________________________
_________________________________
%
_________________________________
_________________________________

Schedule F2 - Consolidated Net Worth
	Schedule F2 is to be completed only if the Consolidated Net Worth Election Registration Application has been filed.
	 1.	 Consolidated net worth (total assets less total liabilities of the affiliated group)..............................................................(1)	 _________________________________
%
	 2.	 Franchise tax apportionment ratio (Schedule 170NC, 170NC1, 170SF or 170SC)..............................................................(2)	 _________________________________
	 3.	 Total (multiply Line 1 by Line 2; enter here and on Schedule A, Line 1)..............................................................................(3)	 _________________________________

Schedule G - Determination of Real and Tangible Property
	

Book Value of Property Owned - Cost less accumulated depreciation		

In Tennessee

	 1.	Land.............................................................................................................................................................................................(1)	 _________________________________
	 2.	
	 3.	
	 4.	
	 5.	
	 6.	
	 7.	
	 	
	 8.	
	 	
	 9.	
	10.	

Buildings, leaseholds, and improvements..............................................................................................................................(2)	
Machinery, equipment, furniture, and fixtures......................................................................................................................(3)	
Automobiles and trucks............................................................................................................................................................(4)	
Prepaid supplies and other tangible personal property ......................................................................................................(5)	
Ownership share of real and tangible property of a partnership that does not file a return .........................................(6)	
a. Inventories and work in progress....................................................................................................................................(7a)	
b.   Exempt finished goods inventory in excess of $30 million.......................................................................................... (7b)	
Certified pollution control equipment (include copy of certificate) and equipment used to
produce electricity at a certified green energy production facility......................................................................................(8)	
Exempt required capital investment ......................................................................................................................................(9)	
Subtotal (add Lines 1 through 7a, subtract Lines 7b through 9)....................................................................................... (10)	

_________________________________ 	
_________________________________ 	
_________________________________ 	
_________________________________ 	
_________________________________ 	
_________________________________ 	
_________________________________
_________________________________
_________________________________
_________________________________

Rental Value of Property Used but Not Owned				
In Tennessee
			
	 	 Net Annual Rental Paid for:
				
	11.	 Real property.............................................................................................................. 	 __________________________ 	 x8 (11)	 __________________________________
12.		 Machinery and equipment used in manufacturing and processing.................... 	 __________________________ 	(12)	
__________________________________
x3
	13.	 Furniture, office machinery, and equipment.......................................................... 	 __________________________ 	(13)	
__________________________________
x2
	14.	 Delivery or mobile equipment.................................................................................. 	 __________________________ 	(14)	
__________________________________
x1

	. 15.		 Tennessee total (add Lines 10 through 14; enter here and on Schedule A, Line 2)....................................................... (15)	 ________________________________ 		

.

Schedule H - Gross Receipts

	 1.	 Gross receipts or sales per federal income tax return ...........................................................................................................(1)	 ________________________________

page 3

Taxable Year

Taxpayer Name

Account No./FEIN

Computation of Excise Tax
Schedule J1 - Computation of Net Earnings for Entities Treated as Partnerships
		Additions:
	 1.	 Ordinary income or loss (federal Form 1065, Line 22) .........................................................................................................(1)	 __________________________________
	 2.	 Income items specifically allocated to partners, including guaranteed payments to partners.......................................(2)	
	 3.	 Any net loss or expense distributed to a publicly traded REIT ...........................................................................................(3)	
	 4.	 Total additions (add Lines 1 through 3)...................................................................................................................................(4)	
		
Deductions:
	 5.	 Expense items specifically allocated to partners not deducted elsewhere........................................................................(5)	
	 6.	 Amount subject to self-employment taxes distributable or paid to each partner or member net of
		 any pass-through expense deducted elsewhere on this return (if negative, enter zero) (include on
		 Schedule K, Line 3).....................................................................................................................................................................(6)	
	 7.	 Amount of contribution to qualified pension or benefit plans of any partner or member, including
	
	 all IRC 401 plans (include on Schedule K, Line 3)..................................................................................................................(7)	
	 8.	 Any net gain or income distributed to a publicly traded REIT .............................................................................................(8)	
	 9.	 Any loss on the sale of an asset sold within 12 months after the date of distribution.....................................................(9)	
	10.	 Total deductions (add Lines 5 through 9)............................................................................................................................ (10)	
	11.	 Total (subtract Line 10 from Line 4; enter here and on Schedule J, Line 1)..................................................................... (11)	

__________________________________
__________________________________
__________________________________
__________________________________

__________________________________
__________________________________
__________________________________
_________________________________
__________________________________
__________________________________

Schedule J2 - Computation of Net Earnings for a Single Member LLC Filing as an Individual
	 	 Additions:
	 1.	 Business Income or loss from federal Form 1040, Schedule C............................................................................................(1)	 __________________________________
	 2.	 Business Income or loss from federal Form 1040, Schedule D............................................................................................(2)	
	 3.	 Business Income or loss from federal Form 1040, Schedule E............................................................................................(3)	
	 4.	 Business Income or loss from federal Form 1040, Schedule F............................................................................................(4)	
	 5.	 Business Income or loss from federal Form 4797.................................................................................................................(5)	
	 6.	 Other: federal Form __________ , Schedule ____________ ......................................................................................................(6)	
	 7.	 Total additions (add Lines 1 through 6)...................................................................................................................................(7)	
		
Deductions:
	 8.	 Amount subject to self-employment taxes distributable or paid to the single member (if negative,
		 enter zero; include on Schedule K, Line 3)..............................................................................................................................(8)	
	 9.	 Total (subtract Line 8 from Line 7; enter here and on Schedule J, Line 1)..........................................................................(9)	

__________________________________
__________________________________
__________________________________
__________________________________
__________________________________
__________________________________

__________________________________
__________________________________

Schedule J3 - Computation of Net Earnings for Entities Treated as Subchapter S Corporations
	
Additions:
	 1.	 Ordinary income or loss (federal Form 1120S, Line 21)........................................................................................................(1)	 __________________________________
	 2.	 Income items to extent includable in federal income were it not for "S" status election ................................................(2)	
	 3.	 Total additions (add Lines 1 and 2)..........................................................................................................................................­­(3)	
		
Deductions:
	 4.	 Expense items to extent includable in federal expenses were it not for "S" status election ...........................................(4)	
	 5.	 Any loss on the sale of an asset sold within 12 months after the date of distribution.....................................................(5)	
	 6.	 Total deductions (add Lines 4 and 5).......................................................................................................................................(6)	
	 7.	 Total (subtract Line 6 from Line 3; enter here and on Schedule J, Line 1) .......................................................................(7)	

__________________________________
__________________________________
__________________________________
_________________________________
__________________________________
__________________________________

Schedule J4 - Computation of Net Earnings for Entities Treated as Corporations and Other Entities
		Additions:
	 1.	 Taxable income or loss before net operating loss deduction and special deductions
		 (federal Form 1120, Line 28).....................................................................................................................................................(1)	
	 2.	 a.	REIT taxable income before net operating loss deduction and .special deductions (federal Form
			 1120-REIT, Line 20)........................................................................................................... (2a)	____________________________
		 b.	REIT deduction for dividends paid (federal Form 1120-REIT, Line 21b).................... (2b)	____________________________
		 c. REIT taxable income after dividends paid deduction (subtract Line 2b from Line 2a)................................................(2c)	
	 3.	 Unrelated business taxable income (federal Form 990-T, Line 5) .......................................................................................(3)	
	 4.	 Other: federal Form __________ ................................................................................................................................................(4)	
	 5.	 Contribution carryover from prior period(s)...........................................................................................................................(5)	
	 6.	 Capital gains offset by capital loss carryover or carryback...................................................................................................(6)	
	 7.	 Total additions (add Lines 1 through 6)...................................................................................................................................(7)	
		
Deductions:
	 8.	 Contributions in excess of amount allowed by federal government..................................................................................(8)	
	 9.	 Portion of current year’s capital loss not included in federal taxable income...................................................................(9)	
	10.	 Total deductions (add Lines 8 and 9).................................................................................................................................... (10)	
	11.	 Total (subtract Line 10 from Line 7; enter here and on Schedule J, Line 1)..................................................................... (11)	

__________________________________

__________________________________
__________________________________
__________________________________
_________________________________
_________________________________
__________________________________
__________________________________
_________________________________
__________________________________
__________________________________

page 4

Taxable Year

Taxpayer Name

Account No./FEIN

Schedule J - Computation of Net Earnings Subject to Excise Tax
	 1.	 Adjusted federal income or loss (enter amount from Schedule J1, J2, J3, or J4).......................................................................(1)	 ______________________________
		
	 2.	
		
	 3.	
		
		
	 4.	
	 5.	
	 6.	
	 7.	
	 8.	
	 9.	
	10.	
	11.	
	12.	
		
13.		
	 	
14.

Additions:

Intangible expenses paid, accrued, or incurred to an affiliated business entity or entities deducted for
federal income tax purposes.......................................................................................................................................................... (2)	 ______________________________
Any depreciation under the provisions of IRC Section 168 not permitted for excise tax purposes due to
Tennessee decoupling from federal bonus depreciation for assets purchased on or before
December 31, 2022.......................................................................................................................................................................... (3)	 ______________________________
Gain on the sale of an asset sold within 12 months after the date of distribution to a nontaxable entity..........................(4)	 ______________________________
Tennessee excise tax expense (to the extent reported for federal income tax purposes)....................................................(5)	 ______________________________
Gross premiums tax deducted in determining federal income and used as an excise tax credit.........................................(6)	 ______________________________
Interest income on obligations of states and their political subdivisions, less allowable amortization...............................(7)	 ______________________________
Depletion not based on actual recovery of cost........................................................................................................................... (8)	 ______________________________
Excess fair market value over book value of property donated................................................................................................ (9)	 ______________________________
Excess rent to/from an affiliate....................................................................................................................................................(10)	 ______________________________
Net loss or expense received from a pass-through entity subject to the excise tax (attach schedule)..............................(11)	 ______________________________
An amount equal to five percent of IRC Section 951A global intangible low-taxed income
deducted on Line 27......................................................................................................................................................................(12)	 ______________________________
Business interest expense deducted in arriving at the amount reported on Sch. J, Line 1. Only
complete if federal Form 8990 was filed. See instructions .......................................................................................................(13)	______________________________
Research and experimental expenditures deducted under IRC Section 174 in arriving at the amount
reported on Sch. J, Line 1...............................................................................................................................................................(14)	 ______________________________
15.		 Total additions (add Lines 2 through 14).....................................................................................................................................(15)	 ______________________________ 	
	 	
	
Deductions:
	16.	 Any depreciation under the provisions of IRC Section 168 permitted for excise tax purposes due to
		 Tennessee decoupling from federal bonus depreciation for assets purchased on or before
		 December 31, 2022 ....................................................................................................................................................................(16)	 ______________________________
	17.	 Any excess gain (or loss) from the basis adjustment resulting from Tennessee decoupling from federal bonus
		 depreciation for assests purchased on or before December 31, 2022...................................................................................(17)	 ______________________________
	18.	 Dividends received from corporations at least 80% owned ....................................................................................................(18)	 ______________________________
	19.	 Donations to qualified public school support groups and nonprofit organizations.............................................................(19)	 ______________________________
	20.	 Any expense other than income taxes not deducted in determining federal taxable income for which
		 a credit against the federal income tax was allowed.................................................................................................................(20)	 ______________________________
	21.	 Adjustments related to the safe harbor lease election (see instructions)..............................................................................(21)	 ______________________________
	22.	 Nonbusiness earnings (from Schedule M, Line 8)......................................................................................................................(22)	 ______________________________
	23.	 Intangible expenses paid, accrued, or incurred to an affiliated entity or entities (from Form IE, Line 4)
		 Attach Form IE - Intangible Expense Disclosure.........................................................................................................................(23)	 ______________________________
	24.	 Intangible income from an affiliated business entity or entities if the corresponding intangible
	 	 expenses have not been deducted by the affiliate(s) under Tenn. Code Ann. § 67-4-2006(b)(2)(N)...................................(24)	 ______________________________
	25.	 Net gain or income received from a pass-through entity subject to the excise tax (attach schedule)...............................(25)	 ______________________________
	26.	 Deductible Grants from governmental units..............................................................................................................................(26)	 ______________________________
	27.	 IRC Section 951A global intangible low-taxed income...............................................................................................................(27)	 ______________________________
28.		 a. Business interest expense currently deductible. See instructions....................................................................................(28a)	______________________________
		 b. Business interest expense carryforward available for future tax years......(28b)___________________________
29. Research and experimental expenditures currently deductible. See instructions.................................................................(29)______________________________
30.		 Total deductions (add Lines 16 through 29, excluding 28b)...................................................................................................... (30)______________________________

Computation of Taxable Income

31. 	 Total business income (loss) (add Lines 1 and 15, subtract Line 30; if loss, enter on Schedule K, Line 1)..........................(31)	 ______________________________
	32.	 Excise tax apportionment ratio (Schedules N, N1, O, P, R or S if applicable or 100%)..........................................................(32)	 ______________________________
%
	33.	 Apportioned business income (loss) (multiply Line 31 by Line 32)..........................................................................................(33)	 ______________________________
34. Nonbusiness earnings directly allocated to Tennessee (from Schedule M, Line 9)................................................................(34) ______________________________
35. Loss carryover from prior years (from Schedule U)....................................................................................................................(35) ______________________________
36. Subject to excise tax (add Line 33 and 34, subtract Line 35; enter here and on Schedule B, Line 4)....................................(36)______________________________

	

page 5

Taxable Year

Account No./FEIN

Taxpayer Name

Schedule K - Determination of Loss Carryover Available
	 1.	 Net loss from Schedule J, Line 31................................................................................................................................................... (1)	 __________________________
		
Additions:
	 2.	 Amounts reported on Schedule J, Lines 18 and 22...................................................................................................................... (2)	 ______________________________
	 3.	 Amounts reported on Schedule J1, Lines 6 and 7, or Schedule J2, Line 8................................................................................. (3)	 ______________________________
	 4.	 Reduced loss (add Lines 1 through 3; if net amount is positive, enter zero)............................................................................ (4)	 ______________________________

%
	 5.	 Excise tax apportionment ratio (Schedules N, N1, O, P, R or S if applicable or 100%)............................................................(5)	 ______________________________
	 6.	 Current year loss carryover available (multiply Line 4 by Line 5)............................................................................................... (6)	 ______________________________

Schedule M - Nonbusiness Earnings Allocation

Allocation and apportionment schedules may be used only by taxpayers doing business outside the state of Tennessee within the
meaning of Tenn. Code Ann. §§ 67-4‑2010 and 67‑4‑2110. The burden is on the taxpayer to show that the taxpayer has the right to
apportion.
If all earnings are business earnings as defined below, do not complete this schedule.  Any nonbusiness earnings, less related expenses,
are subject to direct allocation and should be reported in this schedule.
"Business Earnings" - 1) earnings arising from transactions and activity in the regular course of the taxpayer’s trade or business, or
2) earnings from tangible and intangible property if the acquisition, use, management, or disposition of the property constitutes an
integral part of the taxpayer’s regular trade or business operations.
Earnings which arise from the conduct of the trade or trades or business operations of a taxpayer are business earnings, and the
taxpayer must show by clear and cogent evidence that particular earnings are classifiable as nonbusiness earnings.  A taxpayer may
have more than one regular trade or business in determining whether income is business earnings.
"Nonbusiness Earnings" - all earnings other than business earnings

		
	
Description of Nonbusiness Earnings	
	
(If further description is necessary, see below)	

Gross	
Amounts	

*Less Related	
Expenses	

Net	
Amounts	

Net Amounts
Allocated Directly
to Tennessee

1.	____________________________________________________________________________________________________________________________________________
2.	____________________________________________________________________________________________________________________________________________
3.	____________________________________________________________________________________________________________________________________________
4.	____________________________________________________________________________________________________________________________________________
5.	____________________________________________________________________________________________________________________________________________
6.	____________________________________________________________________________________________________________________________________________

	
7.	____________________________________________________________________________________________________________________________________________
	 8.	____________________________________________________________________________________________________________________________________________
Total nonbusiness earnings (Enter here and on Schedule J, Line 22)			
	 9.	____________________________________________________________________________________________________________________________________________
Nonbusiness earnings allocated directly (Enter here and on Schedule J, Line 34)	
If necessary, describe source of nonbusiness earnings and explain why such earnings do not constitute business earnings as defined
above. Enumerate these items to correspond with items listed above.

*As a general rule, the allowable deductions for expenses of a taxpayer are related to both business and nonbusiness earnings. Items
such as administrative costs, taxes, insurance, repairs, maintenance, and depreciation are to be considered. In the absence of evidence
to the contrary, it is assumed that the expenses related to nonbusiness rental earnings will be an amount equal to 50% of such earnings
and that expenses related to other nonbusiness earnings will be an amount equal to 5% of such earnings (see Tenn. Comp. R. & Regs.
1320‑06‑01.23(3)).

page 6

Taxable Year

Account No./FEIN

Taxpayer Name

Schedule N - Apportionment - Standard (Schedule N1 filers: complete the Schedule N property section, lines 1-12)
Property
	
	
In Tennessee	
Total Everywhere
Use original cost of assets	
	

a. Beginning of Taxable Year	

b. End of Taxable Year	

a. Beginning of Taxable Year	

b. End of Taxable Year

1.	 Land, buildings, leaseholds, and improvements ........... 	 ________________________________________________________________________________________________________________________________________________ 	

	 2.	 Machinery, equipment, furniture, and fixtures............... 	 ________________________________________________________________________________________________________________________________________________
	

3. 	 Automobiles and trucks............................................................ 	 ________________________________________________________________________________________________________________________________________________

	

4.	 Inventories and work in progress ........................................ 	 ________________________________________________________________________________________________________________________________________________

	

5.	 Prepaid supplies and other property.................................. 	 ________________________________________________________________________________________________________________________________________________

	

6.	 Ownership share of real and tangible property

	

	 of a partnership that does not file a return................... 	 ________________________________________________________________________________________________________________________________________________
a.	
b.	
a.	
b.
7.	 Excise tax total (add Lines 1 through 6) ............................. 	 ________________________________________________________________________________________________________________________________________________

	

8.	 Exempt inventory ....................................................................... 	 ________________________________________________________________________________________________________________________________________________ 	
a.	 b.	a.	 b.
	 9.	 Franchise tax total (subtract Line 8 from Line 7)............ 	 ___________________________________________________________________________________________________________________________
	

	 10.	 Excise tax average value (add Lines 7(a) & (b), divide by two).... 	 ________________________________________________________________________________________________________________________________________________
	 11.	 Franchise tax average value (add Lines 9(a) & (b), divide by two)_______________________________________________________________________________________________________________________________________________
	 12.	 Rented property (rent paid x 8)............................................. 	________________________________________________________________________________________________________________________________________________

Use 5X weighted sales factor

	

a. In Tennessee	

b. Total Everywhere	

c. Franchise Ratio	

d. Excise Ratio

%
%
%
%
	 15. 	 Payroll factor................................................................................. 	 ________________________________________________________________________________________________________________________________________________
%
%
	 16.	 Sales factor (business gross receipts)................................. 	 ________________________________________________________________________________________________________________________________________________
%
%
	 17.	 Total ratios (add Lines 13-15 and (Line 16 x five)).........	 ________________________________________________________________________________________________________________________________________________	

	 13.	 Excise tax property factor (add Lines 10 and 12)............ 	 ________________________________________________________________________________________________________________________________________________	
	 14.	 Franchise tax property factor (add Lines 11 and12)...... 	 ________________________________________________________________________________________________________________________________________________ 	

	18.	 Apportionment ratio (divide Line 17 by seven, or by the number of factors with everywhere values greater than zero)
		 (Enter franchise tax apportionment ratio on Sch. F1, Line 4. Enter excise tax apportionment ratio on Sch. J, Line 32.)............

%

%

Schedule N1 - Apportionment -Taxpayers electing to continue using triple weighted sales or any taxpayer required
to use triple weighted sales by Tennessee Code Annotated, Section 67-4-2012(a) (Schedule N1 filers: complete the
Schedule N property section, lines 1-12)
Use triple weighted sales factor

%

	 1.	 Excise tax property factor (add Lines 10 and 12)............ 	 ________________________________________________________________________________________________________________________________________________	
	
	
	
	

2.	 Franchise tax property factor (add Lines 11 and12)...... 	 ________________________________________________________________________________________________________________________________________________
	
%

%
%
3. 	 Payroll factor................................................................................. 	 ________________________________________________________________________________________________________________________________________________
%
%
4.	 Sales factor (business gross receipts)................................. 	 ________________________________________________________________________________________________________________________________________________

%
%
5.	 Total ratios (add Lines 1- 3 and (Line 4 x three))............	 ________________________________________________________________________________________________________________________________________________	

	6.	Apportionment ratio (divide Line 5 by five, or by the number of factors with everywhere values greater than zero)
		 (Enter franchise tax apportionment ratio on Sch. F1, Line 4. Enter excise tax apportionment ratio on Sch. J, Line 32.)............

%

%

page 7

Taxable Year

Account No./FEIN

Taxpayer Name

Schedule O - Apportionment - Common Carriers (railroads, motor carriers, pipelines and barges)
			
In Tennessee	
Total Everywhere	

Ratio

	 1.	 Total franchise mileage (odometer miles).......................................................................	 _____________________________________________________________________________________________ 	

% 	
	 2. 	 Tennessee gross intrastate receipts and interstate gross receipts everywhere.........	 _____________________________________________________________________________________________
%
	 3.	 Total ratios (add Lines 1 and 2).........................................................................................	 _____________________________________________________________________________________________
	 4.	 Apportionment ratio (divide Line 3 by two, or by the number of factors with everywhere values greater than zero) (Enter franchise tax
		 apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 32.)................................................................  

Schedule P - Apportionment - Air Carriers
			
In Tennessee	

Total Everywhere	

%
Ratio

	 1.	 Originating revenue...........................................................................................................	 _____________________________________________________________________________________________ 	
	 2. 	 Air miles  flown  (Include in Tennessee column only air miles flown on flights either

%
%
3.	 Total ratios (add Lines 1 and 2).........................................................................................	 _____________________________________________________________________________________________

		 originating from or ending in Tennessee or both)..........................................................	 _____________________________________________________________________________________________ 	
	

	 4.	 Apportionment ratio (divide Line 3 by two, or by the number of factors with everywhere values greater than zero) (Enter franchise tax
		 apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 32.)................................................................  

Schedule R - Apportionment - Air Express Carriers
			
In Tennessee	

Total Everywhere	

%

Ratio

% 	
	 1.	 Originating revenue............................................................................................................	 _____________________________________________________________________________________________
	 2. 	 Air miles flown  and ground miles traveled (Include in Tennessee column only
	

	 air miles flown on flights either originating from or ending in Tennessee or both.

		 Include only ground miles traveled with respect to actual common carriage of

%

		 persons or property for hire.)............................................................................................	 _____________________________________________________________________________________________ 	

%
	 3.	 Total ratios...........................................................................................................................	 _____________________________________________________________________________________________

	 4.	 Apportionment ratio (divide Line 3 by two, or by the number of factors with everywhere values greater than zero) (Enter franchise tax
%	
		 apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 32.)............................................................... 	 _______________________________

Schedule S - Apportionment - Manufacturer Single Sales Factor
	 1.	 Sales factor (business gross receipts) (Enter franchise tax apportionment ratio on
		 Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 32.)......

In Tennessee

Total Everywhere

Ratio
%

page 8

Account No./FEIN

Taxpayer Name

Taxable Year

Schedule T - Industrial Machinery and Research and Development Equipment Tax Credit
Part 1: Tax Credit Computation
Franchise and excise taxes may be reduced by a credit on industrial machinery and research and development equipment purchased during
the tax period covered by the return and located in Tennessee. The credit is generally computed at 1% of the purchase price of qualified
industrial machinery and research and development equipment. The credit taken on any return cannot exceed 50% of the current year’s
franchise and excise tax liability, but any unused credit may be carried forward 15 years under Tenn. Code Ann. § 67-4-2009(3).
	 1.	 Purchase price of industrial machinery and research and development equipment .....................................(1)	 __________________________
%
	 2. 	Percentage allowed (generally 1%*) .......................................................................................................................(2)	 __________________________
	 3. 	Current year credit (multiply Line 1 by Line 2) .......................................................................................................(3)	 __________________________
	 4.	 Credit available from prior year(s) (from Schedule V)...........................................................................................(4)	 __________________________
	 5.	 Total credit available (add Lines 3 and 4) ...............................................................................................................(5)	 __________________________
	 6.	 Franchise and excise tax liability before any credits (add Schedule A, Line 3 and Schedule B, Line 5)...........(6)	 __________________________
	 7. 	Limitation on credit (50% of Line 6) ........................................................................................................................(7)	 __________________________
	 8. 	Franchise and excise tax liability before any credits (add Schedule A, Line 3 and Schedule B, Line 5) ..........(8)	 __________________________
	 9. 	Credits from Schedule D, Lines 1 through 4 and Schedule D, Line 7..................................................................(9)	 __________________________
	10.	 Tax before Industrial Machinery Credit (subtract Line 9 from Line 8) ..............................................................(10)	 __________________________
	11.	 Amount available in current year (enter the smaller value of Lines 5, 7, or 10 here, and on
Schedule D, Line 5) ..................................................................................................................................................(11)	 __________________________

Part 2: Recapture of Tax Credit
The Industrial Machinery Tax Credit previously established on this form must be partially recaptured if the equipment on which it was
based was sold or removed from the state before the end of the equipment’s life as established for federal income tax purposes. The
recapture amount is a percentage of useful life remaining at the time of sale or removal multiplied by the credit originally established
on this form.  Previously established credits have either offset tax or populated the carryover table Schedule V.  Complete the Industrial
Machinery Credit Recapture Worksheet and then enter the applicable recapture amounts on Lines 12 and 13 below.
12.		 Reduction to credit carryover table, Schedule V, from recapture worksheet, Part 2, Line 16 .....................(12)	 __________________________
	13. 	 Recapture of credit from recapture worksheet, Part 2, Line 17 (enter here and on Schedule B, Line 6).....(13)	 __________________________

*The percentage allowed on Part 1, Line 2 above is 1%, unless the taxpayer has met the requirements of Tenn. Code Ann. § 67-4-2009(3)(I)
and has been approved by the Commissioner of Revenue for an enhanced rate based on the investment amount. The statutory minimum
investment requirements and applicable rates for the enhanced credit are shown on the following chart:
	

Minimum Required Capital Investment	

Rate of Credit	

	$100,000,000	

3%	

	$250,000,000	

5%	

	$500,000,000	

7%	

	$1,000,000,000	

10%	

page 9

Taxable Year

Account No./FEIN

Taxpayer Name

Schedule U - Schedule of Loss Carryover
		
	 Year	
		

Period	
Ended	
(MM/YY)	

Original Return or	
as Amended	

Used in 		
Prior Year(s)	
Expired	

Loss Carryover
Available

1
___________________________________________________________________________________________________________________
2
___________________________________________________________________________________________________________________
3
___________________________________________________________________________________________________________________
4
___________________________________________________________________________________________________________________
5
___________________________________________________________________________________________________________________
6
___________________________________________________________________________________________________________________
7
___________________________________________________________________________________________________________________
8
___________________________________________________________________________________________________________________
9
___________________________________________________________________________________________________________________
10
___________________________________________________________________________________________________________________
11
___________________________________________________________________________________________________________________
12
___________________________________________________________________________________________________________________
13
___________________________________________________________________________________________________________________
14
___________________________________________________________________________________________________________________
15
___________________________________________________________________________________________________________________
Total Amount (Enter here and on Schedule J, Line 35)............................................................................. 			
Schedule V - Schedule of Industrial Machinery and Research and Development Equipment Credit Carryover
		
	 Year	
		

Period				
Ended	
Original Return or	
Used in 		
(MM/YY)	
as Amended	
Prior Year(s)	
Expired or Recaptured	

Industrial Machinery
Credit Carryover
Available

1
________________________________________________________________________________________________________________________________
2
________________________________________________________________________________________________________________________________
3
________________________________________________________________________________________________________________________________
4
________________________________________________________________________________________________________________________________
5
________________________________________________________________________________________________________________________________
6
________________________________________________________________________________________________________________________________
7
________________________________________________________________________________________________________________________________
8
________________________________________________________________________________________________________________________________
9
________________________________________________________________________________________________________________________________
10
________________________________________________________________________________________________________________________________
11
________________________________________________________________________________________________________________________________
12
________________________________________________________________________________________________________________________________
13
________________________________________________________________________________________________________________________________
14
________________________________________________________________________________________________________________________________
15
16____________________________________________________________________________________________________________________________
Total Amount (Enter here and on Schedule T, Line 4)............................................................................