Incentives

All incentives included in this section are based on capital investment, job creation and wages. An overview of potential incentives is included in the links provided for each entity. For a more comprehensive local incentive proposal, companies must submit a letter of intent to the McMinn County Economic Development Authority. Applications for incentives from the respective entities may also apply.


State of Tennessee Incentives

The State of Tennessee offers a wide variety of incentives to industries locating and expanding in the State. For detailed information on Tennessee Incentives, please click on link below or visit the Tennessee  Department of Economic and Community Development (TNECD) at https://tnecd.com/.  McMinn County is a Tier 3 community.  The Development Authority works directly with our regional TNECD Business Development Consultant to connect companies with the discretionary and statatory incentive programs listed in the Tennessee Incentives at a Glance shown below. 

 

Tennessee Incentives at a Glance 

 


 

TVA Valley Investment Incentives

TVA incentives are based on both economic and power system metrics. For more information on TVA incentives, please visit them at https://www.tvasites.com/advantages/incentives/.  The Development Authority works directly with TVA's  Economic Development Field Representative to connect companies with the following programs.  

   

Investment Credit

 

The TVA Investment Credit is a performance-based program rewards companies for five or 10-year economic and energy benefits associated with their new/expanded operations. Awards are applied as a credit to monthly power bills. 

   

Performance Grant

 

The TVA Performance Grant investments in competitive economic development projects for new and expanding companies in the TVA region. Award amounts are paid directly to the company and are flexible for approved purposes. Funding amounts are based upon the five-year economic impact of the project and made at the discretion of TVA Economic Development.

 

Loan Funds

 

 

TVA Loan Funds offer gap financing or lower interest costs to qualifying projects. The maximum loan amount is $3 million and is determined primarily by jobs and capital investment. Loan terms may be from 5 to 20 years based on collateral.

  


Local Incentives

The McMinn County Economic Development Authority, in cooperation with the local governing bodies, customizes incentive offers to prospective new industry or expanding existing industry based on capital investment, number of jobs created, and average wages.  Some of the incentive programs that are available include: 

Payment in Lieu of Tax Program (PILOT) 

Property tax abatements are offered in the form of a Payment in Lieu of Tax Program (PILOT).  The Industrial Development Board of the County of McMinn (IDB) is the entity that manages the PILOT Program.   The Economic Development Authority serves as the administrative arm of the IDB.   PILOT Policies and Procedures, along with application, are available by contacting the McMinn County Economic Development Authority. 

Tax Increment Financing Program (TIF) 

Tax increment financing (TIF) is a financing tool that is used to provide public assistance to economic development projects. Through tax increment financing, incremental taxes from a designated area are allocated to pay debt service on debt incurred by an applicant to pay for qualifying improvements that are made in connection with a particular project.  A TIF may be used for qualified redevelopment projects, urban renewal projects, and economic impact projects that demonstrate a substantial and significant public benefit by constructing public improvements and/or cause the productive reuse of under-utilized property.   TIF Policies and Procedures, along with application, are available by contacting the McMinn County Economic Development Authority. 

Industrial Development Bonds 

Industrial Development Bonds are tax-exempt Private Activity Bonds issued by the Industrial Development Bond Board of the County of McMinn (IDB) on behalf of manufacturing facilities to finance qualified capital projects.  Tax-free bonds are available for new projects with investment up to $10 million.  Investment in real and/or personal property cannot exceed $10 million within a 3-year period or the bond will become a taxable issue.  Rates normally are 70 percent (70%) of prime plus handling. 

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