FAE170: Franchise and Excise Tax Return Kit (includes Schedules A-F, H-K, M, N-P, R-V) (2025)
Tennessee · Tennessee DOR · Used for tax years 2025
Form FAE170 is Tennessee’s 2025 Franchise and Excise Tax Return. It reports net worth, income subject to excise tax, credits, and payments to calculate the total tax due or overpayment. The provided schedules also report gross receipts and disregarded single-member limited liabil
What you'll need
Have the following information ready for the schedules that apply to you:
- Business identification: Tennessee account number, FEIN, legal name, mailing address, NAICS code, Secretary of State control number, and the date Tennessee operations began.
- Federal return information: Gross receipts or sales and the income and expense amounts requested for your entity type. Schedules J1 through J4 reference federal Forms 1065, 1040 and its applicable schedules, 4797, 1120S, 1120, 1120-REIT, and 990-T.
- Financial records: Total assets and liabilities for net worth calculations, plus applicable Tennessee and everywhere amounts for apportionment.
- Payment records: Prior-year overpayment available, quarterly estimated payments, and any extension payment.
- Carryover and credit records: Prior-year losses, credits used, expired amounts, and applicable equipment purchase information.
- Disregarded entity details: Schedule I asks for identifying and ownership information for all disregarded single-member LLCs included in the return.
Where applicable, attach Form IE for Schedule J, line 23, and supporting schedules for Schedule J, lines 11, 25, and 33. Complete the Industrial Machinery Credit Recapture Worksheet if equipment credit recapture applies.
Common mistakes
- Not rounding amounts: The form says to round to the nearest dollar.
- Filling in Schedule A, line 2 without the property-measure election: All other taxpayers must leave this line blank.
- Using Schedule F2 without filing the election application: Complete it only if the Consolidated Net Worth Election Registration Application has been filed.
- Deducting affiliated debt from net worth: Schedule F1 says indebtedness to or guaranteed by a parent or affiliated corporation cannot be a deduction.
- Overstating credits: The credit on Schedule C, line 9 cannot exceed line 8.
- Including a future-year interest carryforward in current deductions: Schedule J, line 30 expressly excludes line 28b.
- Using allocation or apportionment without qualifying: These schedules may be used only by taxpayers doing business outside Tennessee within the cited statutory provisions. The taxpayer must show the right to apportion.
Questions people ask
How is franchise tax calculated on the 2025 form?
Schedule A applies 25 cents per $100 or major fraction thereof to the greater of lines 1 and 2, with a minimum tax of $100. Line 2 is only for taxpayers electing the property measure.
What is the excise tax rate?
Schedule B calculates excise tax at 6.5% of the income subject to excise tax carried from Schedule J, line 39. It then adds credit recapture and additional excise tax on certified distribution sales, if applicable.
What is the excise tax standard deduction?
Schedule J, line 32 uses the lesser of line 31 or $50,000. If the amount is negative, enter zero. Schedule M also provides a deduction for Tennessee-allocated nonbusiness earnings, using $50,000 less the amount on Schedule J, line 32, limited to Schedule M, line 9.
What can I do with an overpayment?
If Schedule C, line 16 shows an overpayment, complete A and/or B to indicate the amount to credit to next year's tax or refund.