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Tennessee
R&D Tax Credits

Connect with us to find out how R&D tax credits can boost your organization’s bottom line.

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This post was last updated on Aug 15, 2025.

Tennessee R&D Tax Credit

Discover the benefits of Tennessee state credits and see how your business could qualify.

Unfortunately, Tennessee does not provide a research and development credit.  You could still be eligible for the Federal R&D Credit - Check out our calculator below to estimate your potential benefit.

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Tennessee R&D Tax Credit Eligibility Summary:

Is the R&D Tax Credit Available?:
Yes
No
Eligible Entities:
Deadline for Tax Filing:
Data Required to Compute Credit:
What Information is needed?:

Tennessee R&D Tax Credit Guidelines:

Tennessee R&D Tax Credit Case Study

A Tennessee-based company recovered thousands in R&D tax credits to refuel growth.

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Total state R&D tax credits earned

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Amount of wages qualified for tax credits

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Total R&D tax credit earned

Key Tennessee R&D Tax Credits R&D Tax Rules Changes

2019' - 22
22' and after
2019' - 22
22' and after

Resources

There are many other considerations and exemptions, including what documentation the IRS requires for the R&D tax credits. Stay updated to navigate the new tax laws with confidence.

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Connect with us to find out how R&D Tax Credits can boost your organization’s performance.

Ready to Maximize Your State Credits?

With just a little info, our Strike Experts can help you start your R&D tax credit journey.

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Ready to calculate your R&D tax credits?

To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.

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Download the app.

Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.

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Frequent Asked Questions

Does Tennessee offer an R&D tax credit for businesses?

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Tennessee does not offer a state-specific R&D tax credit, but businesses can claim the federal R&D tax credit for qualified research expenses incurred in Tennessee. Contact Strike Tax to maximize your savings.

What qualifies as R&D activity for the federal credit in Tennessee?

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Qualifying activities must be technological, aimed at developing or improving a business component, eliminate uncertainty, and involve experimentation. Examples include product innovation or process improvements in industries like manufacturing or tech. Strike Tax can identify qualifying projects.

Can startups in Tennessee claim R&D tax credits?

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Yes, startups can claim the federal R&D credit, including a payroll tax offset of up to $500,000 annually for up to five years if gross receipts are under $5 million and no receipts for more than five years. Strike Tax can guide eligibility.

How do I document R&D expenses for a federal credit in Tennessee?

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Maintain contemporaneous records such as project descriptions, time tracking, wage allocations, supply costs, and contract research agreements. For 2025, Form 6765 requires detailed business component information in Section G for claims over certain thresholds. Strike Tax ensures audit-ready documentation.

What is the process to claim federal R&D tax credits in Tennessee?

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Attach Form 6765 to your federal tax return. In Tennessee, report the federal credit on your state return if it impacts state taxes, though no income tax applies but excise tax may be affected. Strike Tax streamlines the process.

What are the 2025 changes to R&D tax credits in Tennessee?

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No state-specific changes, but federally, the OBBB Act restores immediate expensing for U.S. R&D under Section 174, and Form 6765 mandates Section G for business component details on most claims. Strike Tax can help navigate these updates.