Development Opportunities

Development Opportunities

Business thrives in Downtown Knoxville. Fiber-optic lines thread throughout the core of downtown Knoxville. Three of the country's major interstates converge just on the edge of downtown making Downtown Knoxville a prime business location.

Distinct office space is found in 21st century high-rise towers and quaint, century-old buildings. Abundant parking and residential space completes the picture. Downtown Knoxville is open for business.

CBID Rent Guarantee Program

The CBID's Rent Guarantee program aims to serve as a retail development catalyst for downtown Knoxville by encouraging  the creation of new, tenant-ready retail space on the street level of the 400 and 500 blocks of Gay Street.
(Click here for the application and guidelines)

CBID Development Incentives Program

The Development Incentive Program of the CBID was created to provide a flexible source of funds to assist in making projects happen that add to downtowb's vitality. Proposals are selected based on their ability to create or enhance new activity and benefits for buildings located within the CBID.
(Click here for the application and guidlines)

Taxes
Corporate Excise
Excise tax credit equal to one percent of the purchase of qualified industrial machinery. Excise tax credit equal to one percent of the purchase price of equipment associated with the required capital investment by a distribution or warehouse facility. Net operating loss carry forward of 15 years. All capital losses can be claimed in the year incurred.

Franchise
Jobs tax credit of $2,000 or $3,000 per new full-time employee for eligible businesses that meet requirement of increased employment and additional capital investment. Finished goods inventory in excess of $50 million, $40 million and $30 million for fiscal years on or after July 15, 1996; July 15, 1997 and July 15, 1998, respectively, may be tax excluded.

Property under construction, not being utilized by the corporation, is excluded from the franchise tax. Property rented from an industrial development board may be capitalized on the corporate books.

Pollution control equipment is exempt from the franchise tax. A change advantageous to companies that increase investments in Tennessee while also doing business in other states through a new graduated, weighted sales apportionment formula for franchise and excise taxes (for tax returns filed after December 15, 1997).

Sales
No sales tax on purchase of qualified industrial machinery.

No sales tax on purchases of equipment associated with the required capital investment by a distribution or warehouse facility.

A credit over 0.5 percent paid on building materials, machinery and equipment for new and expanded corporate headquarters facilities investing $50 million.

No sales tax on repairs to industrial machinery or purchase of pollution control equipment.

Reduced sales tax rates for manufacturers' use of energy fuel and water; tax-exempt if used directly in manufacturing process.

Property
No property tax on goods-in-process.

No property tax on finished goods inventories in hands of manufacturers and inventories of merchandise for sale.

No property tax on goods-in-transit (Freeport).

Personal Income
There is no state personal income tax on wages or salaries; however, certain dividend and interest income received by a Tennessee resident is taxable.

Additional Tax Credits
The "Day Care Incentive Act" establishes credit against corporate franchise and excise taxes for any business that establishes a day care center for children of employees.

Empowerment Zone
http://www.knoxvilleempowermentzone.org/

Infrastructure
TELECOMMUNICATIONS
Telecommunications service for downtown Knoxville is provided by two area telephone services: BellSouth and Brooks World Com provide telecommunication service to Knoxville and Knox County. A fiber optic network has been installed to link the Downtown Knoxville area. Plans are underway to enhance the established network.

BellSouth
Service Area: Knoxville and Knox County
Phone: (865) 557-6500
http://www.bellsouth.net

Brooks WorldCom
Service Area: Knoxville and Knox County
Phone: (865) 521-9988
http://www.brooks.net

 

UTILITIES
The Knoxville Utilities Board provides electric service within downtown Knoxville with electricity generated by the Tennessee Valley Authority. KUB is also the principal supplier of natural gas within Knoxville and Knox County and is responsible for wastewater treatment.

Knoxville Utilities Board
Service Area: Knoxville and portions of Knox County
Phone: (865) 524-2911
http://www.kub.org
Rate Description: 60.07/1000kWh