Tennessee Department of Revenue explains franchise and excise tax exemption for Tennessee Investco entities

Meagan Choate, of the Tennessee Department of Revenue’s Taxpayer Services Division, told a webinar audience that ‘‘This exemption covers the Tennessee Investco entities that receive investment credits under the Tennessee Small Business Act.’’ Choate said eligible Investco entities must meet qualifications set out in Tennessee Code Annotated §67-4-2008 and the statutory definition in Tenn. Code Ann. §4-28-102.

The guidance matters for Tennessee entities that receive allocations of investment tax credits under the Tennessee Small Business Investment Company Credit Act (Title 4, Chapter 28). Choate said an Investco qualifies for the franchise-and-excise exemption if it received such an allocation and continues to participate in the program established by that act.

Choate said a Tennessee Investco that receives investment credits must be registered with the Tennessee Department of Revenue for franchise and excise tax purposes; she advised that exemption requests should include a written statement asserting that the applicant is applying under the Investco exemption and certifying it meets the statutory qualifications. She directed listeners to the franchise and excise tax manual and to tn.gov/revenue for more detailed instructions.

For additional assistance, Choate provided the department’s contact points: email revenue.support@tn.gov; the general tax line, 615-253-0600; and the franchise-and-excise line, 615-253-0700. Phone service is available Monday through Friday, 8:00 a.m. to 4:30 p.m. Central Standard Time. She also noted supplemental resources and a PDF available in the Webinar Video Library.

No formal actions or changes in policy were announced during the presentation; the session was informational and closed after questions about where to find guidance and how to apply.