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Does a TNInvestco incur a federal tax liability when it receives a tax credit allocation from the State of Tennessee?

April 26, 2017allocation federal tax incur liability State tax credit Tennessee tninvestco

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Does a TNInvestco incur a federal tax liability when it receives a tax credit allocation from the State of Tennessee?

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The Internal Revenue Service is the sole arbiter with respect to federal tax matters. The state will support TNInvestcos seeking clarification from the IRS regarding the proper federal tax treatment of the credit allocation. The state recognizes that federal tax liabilities could reduce the effectiveness of this economic development initiative and will accordingly work with TNInvestcos to minimize any adverse federal tax implications.