Amends TCA Title 67, Chapter 4.

Present law provides certain credits against a taxpayer's franchise tax liability, including a $4,500 job tax credit for certain businesses that make a minimum capital investment and created a minimum number of qualified jobs. Present law also provides for a credit against franchise and excise tax liability for a taxpayer's expenses related to a relocation of its headquarters if the taxpayer creates a certain amount of jobs and pays certain wages. This bill creates a rural relocation tax credit against a taxpayer's franchise and excise tax liability; the credit will be in addition to the job tax credit under present law and notwithstanding the headquarters relocation credit. The tax credit will be equal to any expenses incurred by a qualified business in relocating to a rural economic development area. For purposes of this credit: (1) A "qualified business" is a business that: is located outside this state; has been in operation for a minimum of three years prior to the filing of a business relocation plan; and files a business relocation plan with the commissioner of revenue to relocate a portion or the entirety of its business operations and a minimum of 50 qualifying jobs to this state; and (2) A "rural economic development area" is a tier 3 or tier 4 enhancement county, as determined by the department of economic and community development for the most recent fiscal year, with a population less than 50,000. The total rural relocation tax credit allowed to a qualified business will not exceed: (1) $2 million if the number of qualifying jobs created is at least 50 but less than 100; or (2) $5 million if the number of qualifying jobs created is 100 or more. This bill requires that the jobs be created within a three-year period from the effective date of the business plan. If the qualified business does not fill and maintain the required number of qualified jobs necessary to receive the rural relocation tax credit for a period of at least five years from the end of the three-year period, then the qualified business will be subject to an assessment of tax plus applicable interest. The amount of tax assessed under this provision will be the total rural relocation tax credit taken multiplied by a fraction, the numerator of which is the number of years the qualified business did not maintain the required number of qualified jobs and the denominator of which is five. Any unused rural relocation tax credit may be carried forward for 10 years after the tax year in which the credit originated.