Adventure Tourism

 Applications to designate an area as an Adventure Tourism District are accepted year-round. Applications must include a resolution from the local governing body authorizing creation of the district, a parcel map of the proposed district including parcel numbers, a business plan that must be based on “quantifiable data demonstrating that the creation of an adventure tourism district would enhance sustainable economic development in the area,” (T.C.A. § 11-11-204b) and a notarized letter from the local government mayor or executive which confirmed their plan. An entire county cannot be designated as one district. Communities interested in preparing applications should consult the guidance document prepared for local governments.

Designated adventure tourism districts

Qualifications for Designated Districts

Approval as an Adventure Tourism District allows qualified businesses that locate within the district to earn a jobs tax credit to offset a portion of the business’ Tennessee franchise and excise tax liability. The qualified business must make a capital investment of at least $500,000 and create the required number of full-time jobs. Businesses located within Tier 4 counties must create a minimum of 10 jobs, those in Tier 3 counties must create a minimum of 13 jobs and businesses located within Tier 2 counties must create a minimum of 20 and Tier 1 counties must create a minimum of 25 jobs in order to qualify.

View the Tier Map

2016 Legislative Action: Taxes, Exemption and Credits — As enacted, allows certain part-time and seasonal adventure tourism jobs, with or without minimum health care, created in adventure tourism districts on or after July 1, 2017, to be counted as half a job for purposes of allowing the employer to qualify for the jobs tax credit against franchise and excise taxes. — Amends TCA Title 11, Chapter 11, Part 2 and Title 67.

Additionally, businesses must complete a jobs tax credit business plan which must be submitted to the Department of Revenue.

CONTACT

Businesses may contact either of the following individuals at the Department of Revenue for questions and assistance in claiming jobs tax credit. Businesses and local officials may contact Ramay Winchester for more information on the Adventure Tourism Program.