Memphis is pro-business. We offer benefits such as tax credits, infrastructure improvements, employee training, energy discounts, expedited licensing and permitting, and financing.
When you invest in Memphis, we invest in you. We match incentive opportunities with your company’s needs. From local to state incentives as well as utility incentives and funding opportunities, Memphis has a variety of financing incentives in place to help your company get the money it needs to relocate or expand.
Moving or expanding in Memphis is a smart business move. View our complete list of incentives and resources.
This incentive provides a credit of $4,500 per job to offset up to 50% of franchise and excise tax (F&E) liability in any given year, with a 15 year carry-forward. Companies must create at least 25 net new full-time jobs and invest at least $500,000 in a qualified business enterprise within a 36 month period.
An additional credit of $4,500 per net new job; available for three years with no carry forward. The credit requires the creation of at least 25 net new full-time positions within a 36 month period and a qualified capital investment of at least $500,000 in a qualified business enterprise.
A credit of 1% to 10% for the purchase, third party installation, and repair of qualified industrial machinery. Qualified expenditures may include:
Manufacturing: Sales tax exemption for industrial machinery and reduced sales tax rate for utilities at qualified manufacturing facilities. Exemptions may include industrial machinery, repair parts, and industrial supplies used in the manufacturing process. Reductions may include 0-1.5% tax on water depending on use and 0-1.5% on gas, electricity, and various energy sources, depending on use.
Electricity and natural gas are normally taxed at the rate of 7.0%; water is taxed at the combined rate of 9.75%. However, manufacturers may be granted a reduced rate of 1.5% for industrial machinery or a full exemption if the energy fuel or water comes in contact with the product.
Projects involving large capital investment and high levels of job creation may qualify for a property tax freeze. Property taxes are frozen at the pre-development level. Memphis and Shelby County’s Economic Development Growth Engine (EDGE) offers several PILOT programs designed for firms looking to expand or relocate in Memphis and Shelby County. These programs are designed for projects that will manufacture, assemble, process, fabricate, and distribute agricultural, mining, biomedical, electronics, food, chemical, alternative fuels, automobiles or other products. Distribution, office, service facilities, pollution control, tourism and other non-retail commercial projects qualify as well. All PILOTs require contracting goals of at least 25% of hard construction costs and 15% of total PILOT savings spent with certified MWBE/LOSB vendors.
*Residential housing, pawn shops, adult entertainment stores, liquor & tobacco stores, payday loan and car dealerships are not eligible. To find out more or begin the application process, visit edgemem.com.
Memphis’ Foreign Trade Zone (FTZ-77), covers all of Shelby County, TN. FTZ-77 can provide businesses engaged in international trade with significant advantages, including lower duties, reduced processing fees and quicker movement of goods. Goods can be stored, processed, manipulated and integrated with domestic goods, all before paying duties. The Economic Development Growth Engine (EDGE) for Memphis & Shelby County administers a General Purpose Foreign Trade Zone and assists companies with establishing subzones. To find out more, visit: edgemem.com
The Downtown PILOT program is a financial incentive that is designed to encourage commercial real estate development in and around the Central Business Improvement District by “freezing” property taxes at the predevelopment level for a predetermined period of time. To be eligible for a PILOT, the value of the building renovations, site improvements or new construction must be equal to or greater than sixty percent (60%) of the total project cost. The program is administered by the Center City Revenue Finance Corporation through an application and review process.
This discretionary grant assists new or expanding companies with funding to support the training of net new full-time employees. Funding levels are based on the number of new full-time jobs created, amount of capital investment, wages of new employees, and the types of skill and knowledge level required.
Workforce Mid-South (WMS) oversees American Job Center locations throughout the Greater Memphis Region to provide a variety of services to employers and individuals seeking employment opportunities. WMS leads the way in connecting job seekers and employers, providing skills training and work opportunities for youth and adults, analyzing and sharing data to educate the public on workforce needs, and aligning community partners around workforce initiatives to help make Greater Memphis a place of economic opportunity for all. WMS, either directly or through contracted service providers, offers an array of services to support residents and businesses in Shelby, Fayette, Lauderdale, and Tipton Counties. These services include:
Customized Training Grant
Customized Recruiting
For more information about WMS, visit work901.com.
Memphis and Shelby County provide free transportation management services to area employers through the Memphis Area Rideshare Program. Memphis Area Rideshare staff works with employers to establish personalized rideshare programs. Free ride matching for carpools and vanpools and information on available transit services are the transportation services provided to employees. Also available at no cost to the employer is a full service vanpool program that includes the provision of passenger vans, maintenance, and insurance.
This discretionary grant is provided to local governments for infrastructure needs for new and expanding companies. TNECD will work with the local officials to identify eligible needs for a project, such as water, sewer, rail, gas, electric, roadway, telecommunications, or other site improvements. FIP funds require local matching funds, and may only be used for infrastructure improvements benefitting a specific company generating net new full-time jobs and capital investment. For onsite improvement, the community must provide a PILOT on the real property investment for at least five (5) years. TNECD is not able to provide incentives prior to the execution and approval of a contract.
Administered by the Tennessee Department of Transportation (TDOT), this grant program provides funding for access roads needed by new or expanding industries. Local governments apply for the grants on behalf of companies. Eligible activities include road design, construction and construction inspection.
Memphis Light, Gas and Water (MLGW) participates in the cost of extending electric or gas service to general power or industrial customers. Several programs are available to utility customers based on location, capital investment, job creation and energy usage.
The goal of this incentive is to promote economic development and re-use of MLGW’s existing infrastructure. An additional 50% investment allowance is offered to customers located in the downtown area and other areas of focus designated by the City of Memphis. The project must be at a location within the downtown area bounded by Chelsea Ave, Danny Thomas Blvd, Crump Blvd and the Mississippi River; or the location must be within the designated boundaries of the areas of focus by the City of Memphis.
Electricity and natural gas are normally taxed at the rate of 7.0%; water is taxed at the combined rate of 9.75%. However, manufacturers may be granted a reduced rate of 1.5% for industrial machinery or a full exemption if the energy fuel or water comes in contact with the product.
The General Manufacturing Credit offers power cost savings to qualifying manufacturers to help retain manufacturing load in the Tennessee Valley. The credits are applied to the electric portion of the utility bill. Availability to electricity customers with usage between 1,000 kW and 5,000 kW who are manufacturers and data centers.
The Investment Credit is an economic development incentive jointly offered by TVA and Memphis Light, Gas and Water. Investment Credit awards are paid as monthly power bill credits to qualifying companies that make a five-year or ten-year commitment to several economic and power system categories. Requirements include a minimum projection of 250kW average monthly demand, creation of 25 jobs, and no plans to reduce the workforce by 50 percent or more. Application is required and award levels based on level of investment.
This discretionary grant is provided to local communities for eligible expenditures not covered by infrastructure or job training grants. The grant can help offset expenses such as temporary office space, capital improvements, and retrofitting. It is only used in exceptional cases where a company’s impact, such as net new full-time jobs* and capital investment in a community is significant. Funds are available subject to the terms of the Accountability Agreement executed by the State, community, and company. TNECD is not able to provide incentives prior to the execution and approval of a contract. Click here for more information on the FastTrack Economic Development Fund.
The Tennessee Valley Authority (TVA) loan program can be used to assist in financing industrial development projects including new industrial plants, existing industry expansions, infrastructure development and service industries. The loans require participation with another lending institution. There is a maximum loan amount of up to $3 million per project and the low interest loans are repaid over 15-20 years. For more information visit: www.tva.gov
Through the Performance Grant, TVA makes direct cash investments in major economic development projects in the Tennessee Valley. Funding is paid directly to the company and it may be used in a variety of ways including public or private infrastructure development, the purchase of fixed assets, energy efficiency or other purposes. Available to projects investing at least $2.5 million and creating 25 or more new jobs. For more information visit: www.tva.gov.
In Memphis and Shelby County, small-issue industrial revenue bonds (IRB), also known as industrial development bonds (IDB), can be used for manufacturing purposes. The bonds are issued by public entities on behalf of private, for-profit companies. The bond buyers provide the funds needed by the company. Interest earned by the bond buyers is exempt from federal (and some state) income tax. As a result, the bond buyers are willing to accept a lower interest rate.
The Development Loan program is a financial incentive designed to encourage commercial real estate improvements within the Central Business Improvement District. This low-interest loan program offers up to $200,000 for building renovations based on established project evaluation criteria. The loan is amortized over a 20-year period at a one percent (1%) interest rate with a balloon payment due at the end of the tenth (10th) year. This program is administered by the Center City Development Corporation.
Please visit downtownmemphis.com for more information.
The Inner City Economic Development (ICED) Loan program is designed to spark revitalization of Memphis inner-city neighborhood business districts through small forgivable loans (up to $25,000). ICED loan funds are primarily for building façade, streetscape, and interior improvements. Building expansions may also be eligible. To be eligible, buildings must be located in a New Markets Tax Credit-eligible census tract.
*Ineligible business categories include liquor/tobacco stores, adult entertainment stores, pawnshops, payday loans, mini-storage facilities and auto dealerships.
