Schedule X: Job Tax Credit (Revision 2022-12)
Tennessee · Tennessee DOR · Used for tax years 2024, 2025, 2026
Tennessee Schedule X calculates job tax credits allowable against franchise and excise taxes. It covers the standard Job Tax Credit, Additional Annual Credit, credits for hiring persons with disabilities, and the Community Resurgence Job Tax Credit, including applicable carryover
Who files this form
Schedule X calculates Tennessee franchise and excise tax job credits for taxpayers claiming the credits listed below. Prior approval is required. To receive approval, file a Job Tax Credit Business Plan or a Job Tax Credit for Hiring Persons with Disabilities Business Plan. A control number is issued if all requirements are met.
- Standard Job Tax Credit: You must be a Qualified Business Enterprise, invest at least $500,000 within the Investment Period, and create and fill the required number of net new full-time Tennessee jobs within that period. The minimum is 25 jobs in a Tier 1 or Tier 2 county, 20 in a Tier 3 county, or 10 in a Tier 4 county.
- Additional Annual Credit: You must meet all Standard Job Tax Credit requirements. Additional credits are available for qualifying jobs in Tier 2, Tier 3, and Tier 4 counties, for higher investment and job creation, or for jobs in an Adventure Tourism Zone.
- Credit for hiring persons with disabilities: Workers must be hired through an existing State of Tennessee employment incentive program. There is no investment requirement or minimum number of jobs.
- Community Resurgence Job Tax Credit: You must create at least 10 full-time jobs in a high-poverty area, paying at least the state's average occupational wage. There is no investment requirement.
What you'll need
Have these forms and details available to complete Schedule X:
- Your taxpayer name, account number or FEIN, and taxable year.
- Your business plan control number from the Department of Revenue. If you received more than one, use the most recent number.
- Counts of qualifying new Tennessee jobs created and filled during the current fiscal year, separated by credit type.
- Total full-time Tennessee jobs at the beginning and end of the tax year.
- Schedule A, Line 3; Schedule B, Line 5; and the applicable Schedule D credit amounts from FAE170 or FAE174.
- Prior-year job credit information for the carryover worksheet, including original or amended credit amounts, credits used, expired amounts, and available carryovers.
If more than one carryover type applies, attach additional carryover pages.
Common mistakes
- Claiming the credit without prior approval: The text requires approval through the applicable business plan.
- Using the wrong standard-credit job line: Taxpayers qualifying for the higher-investment and job-creation additional annual credit must report all new jobs on Line 3, not Line 1.
- Counting the same job twice in Part 2: Do not include the same job on more than one of Lines 11, 13, and 15.
- Putting uninsured full-time employees on Line 18: For the disability hiring credit, full-time employees without employer-provided health insurance belong on Line 20 instead.
- Carrying forward unused Additional Annual Credit: This credit is not refundable and cannot be carried forward.
- Combining carryover types on one page: Check the applicable carryover type and attach additional pages if more than one type applies.
Questions people ask
How much is the Standard Job Tax Credit per job?
The calculation is $4,500 per qualifying job on Line 1. Taxpayers qualifying for the higher-investment and job-creation additional annual credit report jobs on Line 3, where the rate is $5,000 per job. Credit limitations also apply.
What are the disability hiring credit amounts?
The credit is $5,000 for a qualifying full-time employee covered by the employer's health care plan. The $2,000 credit requires at least 10 hours of work per week. Full-time employees without employer health coverage are treated as part-time employees for this credit.
Can Additional Annual Credit offset all franchise and excise tax?
It can offset up to 100% of the current-year franchise and excise tax liability, subject to the Part 5 calculation. Any unused amount is not refundable and cannot be applied to another tax year.
Where do the final credit amounts go on my return?
Enter the Additional Annual Credit from Schedule X, Line 38, on FAE170 or FAE174, Schedule D, Line 7. Enter the other allowable job tax credits from Schedule X, Line 46, on FAE170 or FAE174, Schedule D, Line 6.