IDB Incentives

LOCAL INCENTIVES
Oak Ridge is business and industry friendly. Tax abatements and other incentives are critical components of successful economic development. Incentives are also key in the successful retention and expansion of existing companies and redevelopment projects. The IDB offers the following local incentive programs on a case-by-case basis:

PILOT (Payment in Lieu of Taxes)
The PILOT incentive program is designed to offer businesses looking to expand in or relocate to Oak Ridge a tax incentive based on capital investment and the number of jobs created or retained. Under Tennessee law, local governments cannot directly abate property taxes for private entities. Under the PILOT program, a business seeking an economic incentive is able to utilize the tax exempt status of the IDB on new projects. Under the PILOT agreement, new projects are exempt from property taxes and instead make a payment-in-lieu-of-taxes to the City and County. The IDB uses an evaluation matrix to determine eligibility and terms for the PILOT incentive. Program details, matrix and application can be found here. PILOT Info

TIF (Tax Increment Financing)
The TIF incentive program is a financing tool that is used to provide public assistance to economic development projects. Under Tennessee law, the IDB is authorized to issue tax increment debt to finance the costs of qualifying projects. The TIF incentive provides that incremental property taxes from a designated area are allocated to pay the debt on qualifying improvements that are made in connection with a particular project. Program details and application can be found here. TIF Info

GRANTS
The Grant incentive program is intended to attract and retain businesses that provide the types of employment, capital investment, community involvement and financial impact sought by Oak Ridge and its citizens. Grants are awarded at the sole discretion of the IDB and subject to the availability of assets. Grants can fund economic development projects when a PILOT or TIF incentive cannot be used. The IDB Application for Grant Assistance and additional information can be found here. Grant Info

INDUSTRIAL REVENUE BONDS
Industrial Revenue Bond issuance is an incentive for the creation or expansion of industrial facilities (including capital equipment). Tax-exempt industrial revenue bonds are available to both existing and prospective companies with a qualifying project. The Project Application and additional information can be found here. IRB Info

STATE OF TENNESSEE INCENTIVES
In addition to the local incentives offered by the IDB, the State of Tennessee offers several competitive incentives such as Grants, Tax Credits and Exemptions, Export Assistance, Training Programs, etc. to assist economic development initiatives. For additional information, please refer to the Tennessee Incentive fact sheet here. TN Incentives