A Franchise and Excise Tax Credit is generated by payroll expenditures for all above-the-line and below-the-line, resident and non-resident, and talent services being performed in the state.

For Tier 1 counties, the credit is limited up to 40% of qualified payroll expenses. For Tier 2, 3 and 4 counties, the credit is limited up to 50% of qualified payroll expenses.

Scripted film and TV projects that spend less than $500,000 are unlikely to be considered. Non-scripted projects, as well as animation, commercials, and video game development, are unlikely to be considered if they spend less than $100,000.

Enhanced Job Credit Bonus: a 10% bump (from 40% to 50%) for all resident and non-resident crew working in tier 2-4 counties.

The production company must meet with the Tennessee Film, Entertainment & Music Commission to discuss the production prior to the beginning of principal photography. 

This program is first-come, first-served.

Tiered counties are based on population. Tiers 2-4 consist of more rural areas.

This credit has a carry-forward of 15 years.

9.25-9.75% credit on spend is in the form of a sales tax exemption on all taxable goods, services and personal property.