Green Energy Production Facility Tax Credit
Administered by Tennessee Department of Revenue
This industrial-focused tax credit does not directly benefit residential homeowners; it targets companies manufacturing green energy equipment or operating large certified production facilities. If you own a business with significant green energy infrastructure investment exceeding $250 million, you may qualify for credits on your franchise and excise taxes—contact the Tennessee Department of Revenue to explore eligibility.
This program supports manufacturers and facility operators in Tennessee's green energy supply chain (solar, wind, geothermal, hydrogen, and lithium-ion sectors) with investments over $250 million, offering up to $1.5 million in tax credits against franchise and excise taxes. Your customers eligible for certification must work with the Tennessee Department of Environment and Conservation (TDEC) and coordinate with the Department of Economic and Community Development to document their clean energy technology production and secure approval.
The program provides tax credits (up to $1.5 million per company) and tax-exempt purchase authority for machinery and equipment in certified green energy facilities producing electricity using renewables, hydrogen, nuclear, or paired storage. Three state agencies administer it: TDEC certifies production facilities, the Department of Revenue processes tax credits and refunds, and the Department of Economic and Community Development designates green energy supply chain manufacturers—targeting industrial operators with $250+ million investments in clean energy infrastructure.
Program details
- Program ID
- 4330
- Effective
- 11/1/2009
- Expires
- 1/1/2029
- Last updated
- 1/2/2026
Eligibility
- Sectors
- industrial
- Technologies
- geothermal electric solar thermal electric solar photovoltaics wind (all) hydrogen lithium-ion
Program summary
As of June 30, 2010, taxpayers may take a credit, apply for a refund of taxes paid, or apply for authority to make tax-exempt purchases of machinery and equipment used to produce electricity in a Certified Green Energy Production Facility.
Tennessee provides tax credits to industries in the green energy supply chain that invest more than $250 million into the state. The Department of Revenue, Department of Economic and Community Development as well as the Department of Environment and Conservation are authorized to certify “green energy supply chain manufacturers” as eligible for the Green Energy Tax Credit. The $1.5 million maximum credit is applied to a company's Franchise and Excise Tax liability.
A Certified Green Energy Production Facility is a facility certified by the Tennessee Department of Environment and Conservation (TDEC) as producing electricity for use and consumption on and off the premises using clean energy technology. Clean energy technology includes technology used to generate electricity from renewable energy sources such as geothermal, hydrogen, solar, nuclear, and wind sources. Storage paired with clean energy technology is also included.
Contact & resources
- Contact email
- TN.Revenue@tn.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
