Skip Navigation

The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

US Department Energy Efficiency and Renewable Energy
IREC North Carolina Solar Center
Home Glossary Links FAQs Contact About Twitter    Facebook


Incentives/Policies for Renewables & Efficiency

Printable Version
Sales and Use Tax Credit for Emerging Clean Energy Industry   

Last DSIRE Review: 08/12/2014
Program Overview:
State: Tennessee
Incentive Type: Industry Recruitment/Support
Eligible Renewable/Other Technologies: Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Hydroelectric, Geothermal Electric, Geothermal Heat Pumps, Hydrogen, Clean Energy Technology, Solar Pool Heating, Anaerobic Digestion, Small Hydroelectric, Other Distributed Generation Technologies
Applicable Sectors: Commercial, Industrial
Amount:Tax rate reduced to 0.5%
Terms:Taxpayer must make $100 million investment (minimum) and create 50 full-time jobs at 150% rate of Tennessee's average occupational wage.
Start Date:07/01/2009
Web Site:
Authority 1:
Tenn. Code § 67-6-232
Authority 2:
Date Effective:
Tenn. Code § 67-6-232
2005 (subsequently amended)

In June 2009, Tennessee enacted the Tennessee Clean Energy Future Act of 2009 and expanded its Sales and Use Tax Credit for Emerging Industries to manufacturers of clean energy technologies on the sale or use of qualified tangible personal property. The Sales and Use Tax is reduced to 0.5% for clean energy technology manufacturers. Clean energy technologies are defined as those that result in energy efficiency and technologies that use biomass, geothermal, hydrogen, hydropower, landfill, solar, and wind to generate energy. Qualifying manufacturers must make a minimum $100 million investment, create and maintain 50 full-time jobs for 10 years that pay 150% above the Tennessee occupational average wage, and the taxpayer must be subject to the franchise and excise taxes.

The taxpayer must submit an application to the Department of Revenue to be certified as a qualified facility. Both the Department of Revenue and Department of Economic and Community Development must determine that the allowance of the credit is in the best interests of the state. Once approved as a qualified facility, the taxpayer must submit a claim for credit and documentation that the sales and use tax has been paid on qualified tangible property. Qualified property includes building materials, machinery, and equipment used in the qualified facility and purchased (or leased) during the investment period. The Department of Revenue will then provide a determination to the taxpayer on the amount and how to take the credit.

For additional information, review the Sales and Use Tax Guide found at the Department of Revenue website or contact them directly.

  Department of Revenue Information
Tennessee Department of Revenue
Andrew Jackson Building, Room 1200
Nashville, TN 37242-1099
Phone: (615) 741-2461
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.