Tennessee § 67-4-2018 - Criteria for job tax credit.

§ 67-4-2018. Criteria for job tax credit.

This section shall apply to any person who meets all of the following criteria, notwithstanding any other law to the contrary: The person was formed as a business entity after December 31, 1995; The person was not subject to Tennessee franchise or excise taxes prior to the date chapter 406 of the Public Acts of 1999 became applicable to it; and Had the person been subject to franchise taxes, it could have, under former § 67-4-908(c) prior to its repeal by chapter 406, qualified for the job tax credit and any carryover thereof for the calendar tax years 1997 and 1998. Any person who meets the criteria set forth in subdivisions (a)(1)-(3) shall be entitled to: In accordance with the provisions and limitations of former § 67-4-908(c) prior to its repeal, compute any job tax credit that it would have been entitled to for the calendar tax years 1997 and 1998, had it been subject to the Tennessee franchise tax for those tax years; Apply the job tax credit computed under subdivision (b)(1) to the franchise tax that it would have had in that tax year, had it been subject to such tax, and apply any remaining unused carryover thereof to the franchise tax that it had, or would have had, if it had been subject to the franchise tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated; In accordance with the provisions and limitations of former § 67-4-808(5) prior to its repeal, compute any industrial machinery excise tax credit that it would have had for the calendar tax years 1997 and 1998, had it been subject to the Tennessee excise tax for those tax years; Apply the industrial machinery excise tax credit computed under subdivision (3) to the excise tax that it would have had, if it had been subject to the excise tax in that tax year, and apply any remaining unused carryover thereof to the excise tax that it had, or that it would have had, if it had it been subject to such tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the credit originated. The recapture provisions of former § 67-4-808(4)(D) prior to its repeal shall apply, if any of the industrial machinery purchased in 1997 or 1998 is sold or removed from Tennessee before the expiration of its useful life as established according to the depreciation guidelines in effect for excise tax purposes; In accordance with the provisions and limitations of former § 67-4-805(b)(2)(C) prior to its repeal, compute any net operating loss carryover that it would have had for the calendar tax years 1997 and 1998 had it been subject to Tennessee excise tax for those tax years; and Apply any net operating loss carryover computed under subdivision (b)(5) to any Tennessee net earnings subject to Tennessee excise tax, or that would have been subject to excise tax had the person been liable to pay such a tax, in the next succeeding tax year until fully utilized, but in no case for more than fifteen (15) years after the tax year in which the loss originated. Acts 2000, ch. 982, § 26. Compiler's Notes. Acts 2000, ch. 982, § 60(a) provided that §§ 1-38 of that act shall apply to tax years beginning on or after July 1, 1999, and to limited liability companies, limited liability partnerships and limited partnerships whose tax years ended on or after June 30, 1999, and in which one (1) or more corporations subject to franchise and excise taxes under title 67, chapter 4, parts 8 and 9 before their repeal by Chapter 406 of the Public Acts of 1999, directly or indirectly had in the aggregate an eighty percent (80%) or more ownership interest at any time after June 30, 1998. Chapter 406 of the Public Acts of 1999 repealed the former excise and franchise tax laws effective July 1, 1999. Law Reviews. Taxation-State Tax Apportionment of Out-Of-State Business Income—Constitutionality and Propriety of a State's Apportionment and Taxation of Capital Gains as Business Earnings (Clark Milner), 79 Tenn. L. Rev. 437 (2012).