Amends TCA Title 67, Chapter 4.

Generally under present law, a qualified business enterprise may receive a $4,500 credit against the franchise tax by making a required capital investment, submitting a business plan with the commissioner of revenue, and meeting a job creation threshold that varies between 10-25 jobs depending on the tier of enhancement county that the business enterprise is located in. The required capital investment for businesses other than convention or trade show enterprises is $500,000. The required capital investment for convention or trade show enterprises is $10 million. Additional factors involving the location of a business enterprise, amount of capital invested, and number of jobs created, affect the number of tax years for which the qualified business will be eligible for the credit, as well as increases in the amount of the credit. This bill reduces from $500,000 to $250,000 the required capital investment necessary to be made by a business engaged in an enterprise located in a tier 3 or tier 4 enhancement county with a population less than 50,000, to qualify for a job tax credit. This bill also increases, from $4,500 to $9,000, the amount of the job tax credit provided to such a business if the business creates at least 10 qualified jobs. In addition to the above-described credit, this bill provides for a credit equal to one 100 percent of the franchise tax in the following circumstances, if the taxpayer otherwise meets the requirements established by this bill: (1) The taxpayer makes a capital investment that exceeds $5 million and creates at least 100 qualified jobs that pay an hourly wage of at least $15.00 and include minimum health care, as described in the Tennessee Small Employer Group Health Coverage Reform Act, for which the employer pays 80 percent of the scheduled premium or defined contribution; (2) The taxpayer is allowed a period not to exceed three consecutive years from the effective date of the business plan in order to make the required capital investment necessary to qualify for the additional annual credit allowed under this bill; (3) The additional annual credit is authorized for a period of 20 years beginning with the first tax year in which the qualified business enterprise applies the credit; (4) The qualified business enterprise may first apply the additional credit in any tax year after the qualified business enterprise has met all of the requirements of this bill; however, the qualified business enterprise must begin to apply the credit no later than the first tax year following the end of the investment period; and (5) The additional credit may only be granted if the commissioner of revenue has determined that allowance of the credit is in the best interests of the state.