Tax
Incentives
Focus: New and expanding companies
Programs that spur the growth of jobs and capital investment and encourage the redevelopment of challenged neighborhoods in the City of Memphis and unincorporated Shelby County.
Tax
Incentives
Focus: New and expanding companies
Programs that spur the growth of jobs and capital investment and encourage the redevelopment of challenged neighborhoods in the City of Memphis and unincorporated Shelby County.
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About Tax Incentives
Cities and municipalities seeking to maximize growth potential often use tax incentives to encourage economic activity. These programs, such as tax credits and exemptions, encourage investors to locate or develop their businesses in that city with the expectation of future jobs and higher income for its residents. State and local governments will also partner with the private sector on these economic development initiatives with hopes of attracting high value industries such as medical device manufacturing and other highly skilled, knowledge-intensive manufacturing operations. These tax incentives play a vital role in state and local economic strategies.
Contact EDGE for information about the PILOT program:
901.341.2100
About Tax Incentives
Cities and municipalities seeking to maximize growth potential often use tax incentives to encourage economic activity. These programs, such as tax credits and exemptions, encourage investors to locate or develop their businesses in that city with the expectation of future jobs and higher income for its residents. State and local governments will also partner with the private sector on these economic development initiatives with hopes of attracting high value industries such as medical device manufacturing and other highly skilled, knowledge-intensive manufacturing operations. These tax incentives play a vital role in state and local economic strategies.
Contact EDGE for information about the PILOT program:
901.341.2100
Payment In Lieu Of Taxes (PILOT)
A PILOT is a temporary, partial reduction of future real and/or personal property taxes. In return for the reduction in taxes, the PILOT applicant commits to projects that benefit the community, but that would not occur without the PILOT. Those projects may include creating or retaining jobs with specified payroll and benefits; making an agreed upon capital investment in the area; and contracting with local minority/women/small firms.
EDGE offers several PILOT programs designed to encourage and assist projects that will help the community grow and prosper.
View PILOT Program Comparison Chart
Community Builder PILOT
Goal: Spark investment and job creation in New Markets Tax Credit eligible Census Tracts
Destination Retail PILOT
Goal: Attract unique large-scale retail opportunities
Expansion PILOT
Goal: Assist existing businesses to expand their presence
Fast Track PILOT
Goal: Attract new industrial, distribution, and office projects
Jobs PILOT
Goal: Encourage new industrial, distribution, office & other non-retail commercial projects looking to relocate or expand
Residential PILOT
Goal: Spur investment in market-rate multifamily residential rental projects
Sewer Capacity Management Incentive
Goal: Promote new commercial development with limited or aging infrastructure
Assists with cost of offline sewer storage and pumping facilities as may be required by the City of Memphis
PILOT Applications
PILOT Process
Pre-Application Meeting
EDGE Board Approval
Application Submitted
Mayoral Review City
& County
Staff Analysis
Ready for PILOT Closing
PILOT Process
Pre-Application Meeting
EDGE Board Approval
Application Submitted
Mayoral Review City
& County
Staff Analysis
Ready for PILOT Closing
PILOT Process
Pre-Application Meeting
Application Submitted
Staff Analysis
EDGE Board Approval
Mayoral Review City
& County
Ready for PILOT Closing
PILOT Policies & Procedures
About the Tax Increment Financing (TIF) Program
The EDGE Tax Increment Financing (TIF) program encourages development in the City of Memphis and unincorporated Shelby County by investing a portion of any increase in property taxes within the designated TIF area to finance growth.
The EDGE TIF program collects the increase in property taxes annually and allocates them to the project, as is outlined in the approved Economic Impact Plan. The associated Development Agreement describes what funds are collected, how the funds will be disbursed, and for what purpose the funds can be used.
Eligible Uses
- Public infrastructure
- Public improvements
- Parking
Special High-Impact Projects
With added approval by the State of Tennessee Comptroller and the Director of the Tennessee Department of Economic & Community Development, TIF funds can be used to pay for privately-owned assets within the approved TIF area.
Basic TIF Calculation
Once the EDGE TIF is approved, annual property taxes paid from the designated TIF area are compared to the “Base Year” – taxes paid from the approved area the year before the TIF was approved – to determine the increase. That increase is then allocated to the project, as outlined in the Economic Impact Plan.
Application
Applicants must submit an Economic Impact Plan that addresses the requirements of TCA §7-53-312.
TIF Term
Typically, up to 20 years.
% of New Property Taxes Going to TIF
Typically 50% -to- 75%
Approval Process
-
Briefing for Memphis City Council (if located within the City of Memphis) and the Shelby County Commission Economic Development Committees.
-
Approval by the EDGE Board of Directors, after EDGE holds a public hearing on the project.
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Approval by the Memphis City Council (if located within the City of Memphis) and the Shelby County Commission.
TIF Application & Info
Featured Tax Incentive Projects
In Shelby County, TIFs can be issued by EDGE, the Community Redevelopment Agency (CRA), the Center City Revenue Finance Corporation; and all six suburban Industrial Development Boards. In Memphis and Shelby County, there are six active TIF projects.
