Projects involving a significant capital investment and number of new jobs may qualify for the City of Tullahoma and Coffee County’s aggressive Payment in Lieu of Tax (PILOT) program. This program can enable a company to substantially reduce its tax burden during the critical early phases of operation. Companies are eligible to take advantage of the PILOT by entering into a lease-back arrangement with the Tullahoma Area Economic Development Corporation.
A PILOT is offered as an incentive to both new and expanding companies. It can apply to industrial real property, such as the land and building, as well as personal property, such as equipment.
PILOTs are considered on a case-by-case basis and are based on an analysis of job creation, capital investment and wage rates.
Industrial Revenue Bonds
The Tullahoma Area Economic Development Corporation and the Coffee County Industrial Development Board are authorized to issue bonds to finance industrial facilities. Tax-exempt industrial development bonds are available for qualified manufacturing operations. The financial strength of the company at the time the bonds are taken to market will determine the rate of the bonds. Under the IRB board’s jurisdiction, taxable bonds can be issued and loaned to eligible companies to acquire land, buildings, or equipment.
One Point of Contact
The Tullahoma Area Economic Development Corporation is your single point of contact for all industrial, commercial, and retail projects that are either new or expanding opportunities. TAEDC is there should any requests arise from city or county services, energy needs or questions, and more. This would also include any assistance to help “fast track” the permitting process for construction and local environmental permitting.