Schedule BP (RV-F700003): Franchise and Excise Brownfield Property Credit (Revision 2023-12)
Tennessee · Tennessee DOR · Used for tax years 2024, 2025, 2026
Schedule BP calculates the Brownfield Property Credit available against Tennessee franchise and excise taxes using approved credits, prior-year carryovers, and credit limits. The form also includes schedules for the Brownfield Remediation Credit and carryovers of both credits.
Who files this form
Schedule BP is used to claim the Brownfield Property Credit for a qualified development project approved by the commissioners of Revenue, Economic and Community Development, and Finance and Administration.
To receive the property credit, you must submit a claim with the required investment documentation and meet the minimum capital investment requirement. You cannot take the credit until the commissioner notifies you of the approved amount.
The same form includes Schedule BR for approved brownfield remediation costs connected with a qualified development project in a tier 3 or tier 4 enhancement county.
What you'll need
- Final approval letter: Attach the Department of Revenue letter notifying you of the approved credit amount for Schedule BP or Schedule BR.
- Investment documentation: The credit claim must include documentation required by the commissioner showing that capital investment was made toward the qualified development project during the investment period.
- Tax schedules: Have Schedule A, line 3; Schedule B, line 5; and Schedule D, lines 1, 2, and 7 available to calculate the credit.
- Carryover records: Use Schedule BPCF for property credit carryovers and Schedule BRCF for remediation credit carryovers. These schedules require the originating tax period, original or corrected credit amount, amounts previously used, and expired amounts.
Common mistakes
- Claiming a credit before final approval: You cannot take the credit until the commissioner has notified you of the approved amount. For the property credit, the minimum capital investment must also be met.
- Using tentative approval amounts: Enter the final approved amount on line 1, not the tentative amount shown in the Brownfield Determination or Best Interest of the State Determination letters. Attach the final approval letter.
- Entering amounts on both BP limitation lines: Line 5a uses 50% of line 4 for property purchased in a tier 1 or tier 2 enhancement county. Line 5b uses 75% for a tier 3 or tier 4 county. Enter zero on the other line.
- Exceeding the remediation limit: Schedule BR, line 1 cannot exceed $500,000 for the project.
- Using carryovers out of order: List the oldest period first and use the oldest credit within the 25-year carryover period first. Subtract amounts already used or expired.
- Only changing a carryover entry to report an adjustment: This does not update the Department's records. Report an unreported adjustment on the applicable Departmental form or by correspondence with supporting documentation.
Questions people ask
How much property credit can I use in the current year?
Schedule BP, line 9 is the smallest of your total available credit on line 3, the applicable credit limit on line 5c, or the remaining tax on line 8 after the specified Schedule D credits.
What costs qualify for the remediation credit?
Remediation costs are costs directly related to investigating, remediating, or mitigating brownfield property as required by a voluntary agreement or consent order under Tenn. Code Ann. § 68-212-224. The credit applies to an approved qualified development project in a tier 3 or tier 4 enhancement county, with a maximum credit of $500,000 per project.
Can unused credits carry forward?
Yes. Both credits may be carried forward to offset franchise and excise tax for up to 25 years or until fully used, whichever happens first. Use Schedule BPCF for the property credit and Schedule BRCF for the remediation credit.
Where do I report the combined credits?
Add Schedule BP, line 9 and Schedule BR, line 7. Enter the sum in the form's Total Brownfield Property and Brownfield Remediation Credits section and on Schedule D, line 3.