Recently, we learned that our statewide unemployment rate for the month of February was a full percentage point lower than it was in February of 2017. Tennessee continues as a leader in job creation and economic growth. For several weeks, my colleagues and I have remained focused on how we can better prepare all regions of our state to contend with neighboring states when it comes to attracting quality jobs.
Last week in the House chamber, we voted to unanimously support passage of House Bill 2112 — which I sponsored. The measure adds another recruitment tool to our state’s arsenal through tax incentives — especially as it relates to the state’s Franchise & Excise (F&E) Tax.
By law, any corporation, limited partnership, limited liability company or business trust that is chartered/organized in Tennessee and is doing business in this state must register for and pay the F&E Tax. This tax takes into account factors like net worth or book value of personal property owned or used in Tennessee, as well as net earnings or income for a specific tax year.
House Bill 2112 reduces those factors for financial asset management companies who desire to move to Tennessee. It simplifies their tax liability and promotes job creation through the use of a single sales factor. Under this method, the sales factor is the only factor considered when it comes to determining a company’s tax base.
This initiative is the latest in a series of Republican-led measures designed to spur economic growth and prosperity in cities and towns across Tennessee. Over the last several years, House Republicans have slashed more than $800 million in taxes and created more than 400,000 net new private sector jobs. Because we have implemented a conservative fiscal strategy, we have the lowest overall taxes of any state, and we are open for business.
I am pleased with the support that House Bill 2112 has received and am eager to see it signed into law by Governor Haslam. I know it will open up a new world of possibilities as it relates to quality job growth across all regions of our state.
My colleagues and I will continue to back sensible initiatives and provide additional resources so that Tennessee can continue to thrive. This will allow more of our citizens to have an opportunity to achieve their version of the American Dream. House Bill 2112 keeps the Volunteer State moving in the right direction.