2022 
 
 General Information 
 Electronic filing and payment is required unless you have received a hardship exemption. Generally, hardship 
 exceptions will include taxpayers who do not own a computer; taxpayers who do not have access to the internet; 
 and taxpayers whose religious beliefs prohibit the use of computers and related technology. 
 
 The beginning and ending dates of the tax year must be entered.  The tax year covered must coincide with the 
 federal return. A return can cover a 52/53-week filing period, but cannot otherwise exceed 12 months. 
 
 Enter the franchise and excise account number.  This number may be found by using Tennessee Taxpayer Access 
 Point (TNTAP) available on the Department’s website at www.tn.gov/revenue. 
 
 Enter the FEIN and/or Tennessee Secretary of State Control Number.  Also enter the North American Industry 
 Classification System (NAICS) code. 
 
 Check all of the boxes in the top right of the return that apply to the taxpayer. 
 a)     Check the amended return box if the return reflects changes from a previously filed return. 
 b)     Check the final return box if all of the assets of the business have been liquidated and distributed and no 
        further returns are required to be filed. If the final return box is checked, the Department may request a 
        schedule of liquidation, distribution, or disposition of all assets and/or Final Return Worksheets (available 
        on the Department’s website). 
 c)     Check this box if the taxpayer is a captive Real Estate Investment Trust (REIT) that is not owned by a bank, 
        bank holding company or a public REIT. 
 d)     Check this box to indicate that the Consolidated Net Worth Election Registration Application has been 
        filed.  This election is a group election that is binding for five years. 
 e)     Check this box if the Consolidated Net Worth Election Registration Application was filed during the tax 
        period with the revoke election box checked.  Complete Sch. F1- Non-Consolidated Net worth. 
 f)     The election to use the alternative annualized income installment method of computing the required 
        estimated tax payments can only be made on an original tax return and must be made annually. See the 
        Estimated Franchise and Excise Tax Payments Worksheet for additional information and to determine 
        the required quarterly estimates under this alternative method. The amounts from Line 23 of the 
        worksheet should be reported on Schedule E, Lines 2(a) through 5(a). 
 g)     Check this box if a federal income tax extension was filed. 
 
 Date Tennessee operations began should be completed if this is the initial return.  Taxpayers incorporated or 
 otherwise formed in Tennessee must prorate the franchise tax on the initial return from the date formed or the 
 date Tennessee operations began, whichever occurred first.  Taxpayers incorporated or otherwise formed 
 outside Tennessee must prorate the franchise tax on the initial return from the date Tennessee operations 
 began. 
 
 A taxable entity that is incorporated, domesticated, qualified or otherwise registered to do business in Tennessee 
 that was inactive in Tennessee for the entire taxable period and owes only the minimum tax may file only page 1 of 
 this return and omit the remaining pages. 

 Schedule A  –Computation of Franchise Tax 
 Line 1:      Enter the sum of the amounts from Schedule F and Schedule F2, Line 3.  Generally, only one schedule 
              is completed.  However, both are completed if a member of a group that has made the consolidated 
              net worth election exits that group (due to sale, merger, or like event) before the group's period end 
              date.  In that case, the exiting member completes Schedule F, and the remaining group members 
              complete Schedule F2.  Captive real estate investment trusts (REITs) enter the value from Schedule F1, 
              Line 3 on this line. 
 Line 2:      Enter amount from Schedule G, Line 15. 
 Line 3:      Multiply the greater of Line 1 or 2 by $0.25 per $100 or major fraction thereof. The minimum tax is 
              $100.  Franchise tax may be prorated on short period returns, but not below the $100 minimum. 
              Complete the Short Period Return Worksheets and retain them for your records when filing a short 
              period return. The franchise tax may not be prorated on returns covering 52 weeks filed by 52/53 
              week filers. 
 
 Schedule B  –Computation of Excise Tax 
 Line 4:      Enter amount from Schedule J, Line 41. 
 Line 5:      Multiply amount on Line 4 by 6.5%. If Line 4 is a loss, enter zero. 
 Line 6:      Enter amount from Schedule T, Line 13. 
 Line 7:      Add Lines 5 and 6. 
 
 Schedule C  –Computation of Total Tax Due or Overpayment 
 Line 8:      Add Schedule A, Line 3, and Schedule B, Line 7. This is the total franchise and excise tax liability. 
 Line 9:      Enter the total available credits from Schedule D, Line 8. Total credits cannot exceed the total 
              franchise and excise amount on Line 8. 
 Line 10:     Subtract Line 9 from Line 8. This value must be zero or greater. 
 Line 11:     Enter total payments reported on Schedule E, Line 7. If filing an amended return, subtract any tax 
              refund received and reduce payment amounts reported in Schedule E accordingly. 
 Line 12:     Penalty is calculated at a rate of 5% for each 30-day period, or portion thereof, that a return is 
              delinquent, up to a maximum of 25% of the delinquent amount. The minimum penalty is $15 for the 
              delinquent filing of a return. Tenn. Code Ann. § 67-1-804. 
 Line 13:     Interest is due on any amount of tax that is paid after the statutory due date of the return. The 
              interest rate is determined in accordance with Tenn. Code Ann. § 67-1-801. The current interest rate 
              can be found at www.tn.gov/revenue under Tax Resources. 
 Line 14:     Penalty on estimated franchise and excise tax payments is calculated at a rate of 2% per month, or 
              portion thereof, that an estimated payment is deficient or delinquent, up to a maximum of 24% of the 
              deficient or delinquent amount. It is calculated from the due date of the estimated payment through 
              the date paid or the due date of the return, whichever is earlier. 
 Line 15:  Interest is calculated on estimated franchise and excise tax payments on any deficient or delinquent 
              amount. The rate of interest is the same as determined on Line 13. It is calculated from the due date 
              of the estimated payment through the date paid or the due date of the return, whichever is earlier. 
 Line 16:     Add Lines 10, 12, 13, 14 and 15, and subtract Line 11. If an overpayment exists on this line, enter the 
              amount to be credited to the next year on Line A and/or to be refunded on Line B. If a refund of $200 
              or more is requested on Line B of an amended return, a Report of Debts Form must be completed and 
              filed with the return. 

 Schedule D  –Schedule of Credits 
 Line 1:      A taxpayer may take a credit for gross premium tax paid to the Department of Commerce and 
              Insurance during the period covered by this return, excluding the 0.4% Tennessee Occupational Safety 
              and Health Act (TOSHA) surcharge.  If the credit is taken, this same amount should be added to 
              taxable income on Schedule J, Line 9.  A taxpayer may elect to forego the credit instead of adding back 
              the deduction in Schedule J. 
 Line 2:      Enter any Community Investment Credit available per Tenn. Code Ann. § 67-4-2109(h). 
 Line 3:      Enter any Tennessee Rural Opportunity Fund Credit available per Tenn. Code Ann. § 67-4-2109(I). 
 Line 4:      Enter any Tennessee Small Business Opportunity Fund Credit available per Tenn. Code Ann. § 67-4- 
              2109(I). 
 Line 5:      Enter the amount of Industrial Machinery Credit from Schedule T, Line 11. 
 Line 6:      Enter the amount of Job Tax Credit from Schedule X, Line 46. 
 Line 7:      Enter the amount of Additional Annual Job Tax Credit from Schedule X, Line 38. 
 Line 8:      Add Lines 1 through 7 and enter here and on Schedule C, Line 9. Total credits may not exceed the 
              amount on Schedule C, Line 8. 
 
 Schedule E  –Schedule of Payments 
 Lines 2a-5a:  Enter the required quarterly installments from the applicable line of the Estimated Franchise and 
              Excise Tax Payments Worksheet. 
 Lines 1-6:   Enter any overpayment from a prior period, estimated tax payments, and extension payment on the 
              applicable lines. 
 Line 7:      Total the amounts in the second column, and enter here and on Schedule C, Line 11. 

 Schedule F  –Non-consolidated Net Worth 
 All amounts in this schedule should be determined in accordance with generally accepted accounting principles 
 (GAAP).  However, financial institutions that are not filing a combined return and do not maintain GAAP records may 
 complete this schedule based on records used for federal tax purposes, provided this method reflects the 
 taxpayer's activity. Tenn. Code Ann. § 67-4-2106(b). 
 
 Net worth is total assets less total liabilities computed in accordance with the above instructions.  To the extent that 
 a corporation is inadequately capitalized, indebtedness to or guaranteed by a parent corporation or affiliated 
 corporation must be added back, Tenn. Code Ann. § 67-4- 2107(b),  TENN. COMP. R. & REGS. 1320-06-01.-15. This 
 amount cannot be a deduction. 
 
 Enter the apportionment ratio as computed on Schedules SF.  If the entity is not entitled to apportion, the ratio 
 entered on Schedule SF and this schedule should be 100%.  Total the last column, and enter this amount here and 
 on Schedule A, Line 1. 
 
 Schedule SF  – Franchise Tax Apportionment  –Standard 
 This apportionment schedule is used by financial institutions or unitary groups of financial institutions who have not 
 elected to compute net worth on a consolidated basis.  In addition, this apportionment schedule is used by any 
 member that exits a group that has made the consolidated net worth election.  This may occur due to a change in 
 ownership, merger, or liquidation of the member.  The member exiting the group must compute its net worth on 
 Schedule F.  The remaining group members continue to be bound by the consolidated net worth election and would 
 complete Schedule F2.  Tenn. Code Ann. § 67-4-2103(d). 
 
 List each unitary member and compute their franchise tax apportionment ratio.  The ratio(s) computed should be 
 reported on Schedule F to determine the net worth franchise tax base.  See Tenn. Code Ann. § 67-4-2118 for a 
 complete list of receipts to be included and applicable allocation requirements. Values in the apportionment 
 schedules must be reported at the same value used for federal income tax purposes. 
 
 Schedule F1  –Captive Real Estate Investment Trust Group Net Worth 
 Schedule F1 is to be completed by Captive Real Estate Investment Trusts (REIT) and Captive REIT Affiliated Groups as 
 defined by Tenn. Code Ann. § 67-4-2004. Captive REITs and Captive REIT Affiliated Groups that are part of a larger 
 group that has made an election to file consolidated net worth must use Schedule F2. 
 
 Line 1:      Net worth is total assets less total liabilities computed in accordance with the above instructions. 
 Line 2:      Enter franchise tax apportionment ratio as computed on Schedule N, Line 14, Column c. If the 
              taxpayer is not entitled to apportion, enter 100%. 
 Line 3:      Multiply Line 1 by Line 2. Enter this amount here and on Schedule A, Line 1. 
 
 Schedule F2  –Consolidated Net Worth 
 Schedule F2 is to be completed only if the Consolidated Net Worth Election Registration Application has been filed. 
 The affiliates included for purposes of this schedule may include affiliates that are not financial institutions. All 
 affiliates must be domestic persons.  Tenn. Code Ann. § 67-4-2004(1)(A), Tenn. Code Ann. § 67-4-2004(15), (17), (38). 
 The amounts in this schedule should be determined in accordance with GAAP.  An affiliate exiting the group during 
 this taxable year (due to sale, merger or like event) should not be included on this schedule, but must complete 
 Schedule F.  Members in the consolidated net worth group at year end will be included in this schedule. 
 
 Line 1:      Consolidated net worth is total assets less total liabilities of all members of the affiliated group 
              computed in accordance with the above instructions. 
 Line 2:      Enter franchise tax apportionment ratio as computed on Schedule 174SC or 174NC. 
 Line 3:      Multiply Line 1 by Line 2.  Enter this amount here and on Schedule A, Line 1. 

 Schedule G  –Determination of Real and Tangible Property 
 Values in Schedule G must be reported in accordance with generally accepted accounting principles (GAAP), except as 
 permitted by Tenn. Code Ann. § 67-4- 2108(a)(3). 
 Lines 1-5:   The amounts on these lines are based on the year-end net book values of the assets on the entity’s 
              book basis books and records. All tangible assets should be included in these values regardless of how 
              the assets are classified. 
 Line 6:      This amount is calculated by multiplying the taxpayer’s percentage of ownership in a general 
              partnership, shown on federal Schedule K-1, by the amount of real and tangible property owned or 
              used in this state, shown on the balance sheet of an entity treated as a partnership for federal tax 
              purposes. Only include property from an entity treated as a partnership on this line if the entity itself 
              is not required to file a Tennessee franchise and excise tax return. 
 Line 7:      Include all inventory and work in progress on Line 7a.  Include all exempt inventory on Line 7b. 
              Exempt inventory is any amount of finished goods in excess of $30,000,000 in accordance with Tenn. 
              Code Ann. § 67-4-2108(a)(6)(B). 
 Line 8:      Enter the net book value of pollution control equipment that has been certified by the Department of 
              Environment and Conservation. This amount will have been reported on Lines 2 or 3 above. 
 Line 9:      Enter the amount of any required capital investments exempted by Tenn. Code Ann. § 67-4- 
              2108(a)(6)(G). Exempt required capital investments is two thirds (⅔) in value of all capital investments 
              that are the basis for a taxpayer's entitlement to credits under §  67-4-2109(b)(2)(B); provided, 
              however, that the investments shall qualify as “exempt required capital investments” only in those tax 
              years in which the additional annual credit is actually allowed under §  67-4-2109(b)(2)(B). 
 Line 10:     Add Lines 1 through 7a, and subtract Lines 7b through 9. 
 Lines 11-14: The amounts in the first column are the total net annual rental paid for property located in Tennessee. 
              Multiply these amounts by the multiples, and enter each total on Lines 11 through 14. A sub-rental 
              deduction may only be made in accordance with TENN. Comp. R. & REGS. 1320-6-1-.18(1). Rents must 
              be annualized for returns covering a period of less than 12 months. Complete the Short Period Return 
              Worksheets and retain them with your records when filing a short period return. 
 Line 15:     Add Lines 10 through 14, and enter total here and on Schedule A, Line 2. This amount is the total real 
              and tangible property owned or used in Tennessee. 
 
 Schedule H - Gross Receipts 
 Line 1:      Enter the amount of gross receipts or sales shown on the federal income tax return covering the same 
              tax period. This is Line 1a on federal Forms 1120, 1120S and 1065 and Schedule C, Line 1 on federal 
              Form 1040. 

 Schedule J1  –Net Earnings for Entities Treated as Partnerships 
 Line 1:  Enter the amount of ordinary income (loss) from federal Form 1065, Line 22. 
 Line 2:  Enter the amount of additional income items passed through to partners or members from federal 
          Form 1065, Schedule K, Lines 2 through 11. This includes guaranteed payments to partners. However, 
          do not include amounts reported on Schedule K, Line 11 for Section 743(b) adjustments (code F). 
          Report any gain on the sale or disposition of property where a Section 179 expense deduction was 
          previously passed through to a partner for that property and the transaction was not reported on 
          federal Form 4797 but was reported on federal Form 1065, Sch. K, box 20, code L.  The gain included 
          on Sch. J1, Line 2  should be computed on a pro forma basis at the partnership level and any Section 
          179 expense limits that would have been imposed for federal income tax purposes at the partner level 
          should be disregarded. 
 Line 3:  Enter any net loss or expense distributed to a publicly traded Real Estate Investment Trust (REIT) on 
          Schedule K-1. The name and FEIN of the REIT must be made available upon request 
 Line 4:  Add Lines 1 through 3. 
 Line 5:  Enter the amount of additional expense items passed through to partners or members from federal 
          Form 1065, Schedule K, Lines 12 and 13 a-d.  Do not include amounts reported on Schedule K Line 13 
          for Section 743(b) adjustments (code V). In addition, do not report contributions to a qualified pension 
          or benefit plan of any partner or member on this line, but report them on Line 7.  Report any loss on 
          the sale or disposition of property where  a Section 179 expense deduction was previously passed 
          through to a partner for that property and the transaction was not reported on federal Form 4797 but 
          was reported on federal Form 1065, Sch. K, box 20, code L.  The loss included on Sch. J1, Line 5  should 
          be computed on a pro forma basis at the partnership level and any Section 179 expense limits that 
          would have been imposed for federal income tax purposes at the partner level should be disregarded. 
 Line 6:  Enter the amount subject to self-employment taxes distributable or paid to each partner or member 
          net of any pass-through expense deducted elsewhere on this return, such as IRC Section 179 
          expenses and contributions. Do not enter a negative amount on this line. This deduction cannot 
          create a loss carryover. Include this amount on Schedule K, Line 3. 
 Line 7:  Enter the amount of contribution to qualified pension or benefit plans of any partner or member, 
          including all IRC 401 plans. This deduction cannot create a loss carryover. Include this amount on 
          Schedule K, Line 3. 
 Line 8:  Enter any net gain or income distributed to a publicly traded REIT reported on federal Schedule K-1. 
          Attach a schedule listing the name and FEIN of the REIT. 
 Line 9:  Enter loss on the sale of an asset not already included in the taxpayer’s net earnings or loss that was 
          distributed to a member, partner, or certificate holder, when such asset was sold within 12 months of 
          the date of distribution. Thus, the loss is recognized by the entity making the asset distribution rather 
          than by the seller of the asset. 
 Line 10: Add Lines 5 through 9. This is the total amount of deductions. 
 Line 11: Subtract Line 10 from Line 4, and enter here and on Schedule J, Line 1. 
  

Schedule J2 –Net Earnings for a Single Member LLC Filing as an Individual 
Line 1:     Enter the amount of business income (loss) from federal Form 1040, Schedule C, Line 31. 
Line 2:     Enter the amount of capital gain (loss) attributable to the LLC from federal form Schedule D. If it is a 
            loss, enter as a negative. 
Line 3:     Enter the amount of net profit (loss) attributable to the LLC from federal Form 1040, Schedule E. 
Line 4:     Enter the amount of net profit (loss) attributable to the LLC from federal Form 1040, Schedule F, Line 
            34. 
Line 5:     Enter the amount of gain (loss) attributable to assets used by the LLC from federal Form 4797. 
Line 6:     Enter the amount of any income (loss) attributable to the LLC that is reported on any other federal 
            schedules and that is not reported on Lines 1 through 5 above. Please enter the type of federal form 
            and schedule in the space provided. 
Line 7:     Add Lines 1 through 6. 
Line 8:     Enter the amount subject to self-employment taxes distributable or paid to the single member. This   
            deduction cannot create a loss carryover. Include this amount on Schedule K, Line 3. 
 
Line 9:     Subtract Line 8 from Line 7 and enter here and on Schedule J, Line 1.

 Schedule J3  –Net Earnings for Entities Treated as Subchapter S Corporations 
 Line 1:  Enter the amount of ordinary income (loss) from federal Form 1120S, Line 21. 
 Line 2:  Enter the amount of additional income items passed through to shareholders from federal Form 
          1120S, Schedule K, Lines 2 through 10.  Report any gain on the sale or disposition of property where a 
          Section 179 expense deduction was previously passed through to a shareholder for that property and 
          the transaction was not reported on federal Form 4797 but was reported on federal Form 1120S, Sch. 
          K, box 17, code K.  The gain included on Sch. J3, Line 2  should be computed on a pro forma basis at 
          the S corporation level and any Section 179 expense limits that would have been imposed for federal 
          income tax purposes at the shareholder level should be disregarded. 
 Line 3:  Add Lines 1 and 2. 
 Line 4:  Enter pass-through expense items shown on federal Form 1120S, Schedule K, Lines 11-12d.  Report 
          any loss on the sale or disposition of property where a Section 179 expense deduction was previously 
          passed through to a shareholder for that property and the transaction was not reported on federal 
          Form 4797 but was reported on federal Form 1120S, Sch. K, box 17, code K.  The loss included on Sch. 
          J3, Line 4 should be computed on a pro forma basis at the S corporation level and any Section 179 
          expense limits that would have been imposed for federal income tax purposes at the shareholder 
          level should be disregarded. 
 Line 5:  Enter loss on the sale of an asset not already included in the taxpayer’s net earnings or loss that was 
          distributed to a shareholder or certificate holder, when such asset was sold within 12 months of the 
          date of distribution. Thus, the loss is recognized by the entity making the asset distribution rather than 
          by the seller of the asset. 
 Line 6:  Add Lines 4 and 5. This is the total amount of deductions. 
 Line 7:  Subtract Line 6 from Line 3, and enter here and on Schedule J, Line 1. 
 
 Schedule J4  – Net Earnings for Entities Treated as Corporations and “Other” Entities 
 Line 1:  Enter the amount of net earnings (loss) from federal Form 1120, Line 28. This is the amount of taxable 
          income or loss before the net operating loss deduction and special deductions. An Excise Tax Interest 
          Expense Worksheet is available that shows the methodology that should be used in determining the 
          interest expense deduction on a proforma federal return, after any 163(j) limitation. When one or 
          more group members are taxed as partnerships, include ordinary income (loss) from federal Form 
          1065, Line 22 on this line, but also see the instructions to  Line 4. 
 Line 2a: Enter the amount from federal Form 1120-REIT, Line 20. 
 Line 2b: Enter the amount from federal Form 1120-REIT, Line 21b. 
 Line 2c: Subtract Line 2b from Line 2a. 
 Line 3:  Enter the amount of unrelated business taxable income before net operating loss deduction from 
          federal Form 990-T, Line 5. 
 Line 4:  Enter the amount of net earnings or loss from any entity that reports on any other federal schedules 
          and that is not reported on Lines 1 through 3 above.  Enter the type of federal form in the space 
          provided.  Include pass-through income and expense items from federal Form 1065, Schedule K. 
 Line 5:  Contribution carryovers must be added back to net income when used for federal tax purposes. 
 Line 6:  Capital loss carryovers must be added to net income when offset against capital gains for federal tax 
          purposes. 
 Line 7:  Add Lines 1 through 6. 
 Line 8:  Contributions may be deducted, in full, in the year in which the contributions were made. 
 Line 9:  Capital losses may be deducted, in full, the year the loss was incurred. 
 Line 10: Add Lines 8 and 9.  This is the total amount of deductions. 
 Line 11: Subtract Line 10 from Line 7, and enter here and on Schedule J, Line 1. 

Schedule J  –Net Earnings Subject to Excise Tax 
Line 1:      Enter the applicable amount from line 11, 9, 7, or 11of Schedule J1, J2, J3, or J4, respectively. 
Line 2:      Enter expenses from transactions between members of the group. 
Line 3:      Enter any dividends and receipts from transactions between members of the group. 
Line 4:      Add Lines 1 and 2, and subtract Line 3. 
Line 5:      Enter the intangible expense you paid, accrued or incurred to an affiliate and deducted on your 
             federal income tax return. “Intangible expense” and“affiliate” are defined by Tenn. Code Ann. § 67-4- 
             2004(24) and Tenn. Code Ann. § 67-4-2004(1)(A). A penalty may be imposed for failure to disclose per 
             Tenn. Code Ann. §§ 67-4-2006(d), 67-1-804(b)(2). 
Line 6:      Enter any depreciation under the provisions of IRC Section 168 not permitted for excise tax purposes 
             due to Tennessee permanently decoupling from federal bonus depreciation. 
Line 7:      Enter the amount of any gain on the sale of an asset sold within 12 months after distribution to a 
             nontaxable entity. This gain is to be reported by the entity that distributed the assets. If an asset was 
             distributed to a member, partner, shareholder, or certificate holder and no sale has taken place, or 
             the asset was sold 12 months after distribution, no entry is required. Failure to report this gain may 
             result in a 50% negligence penalty. 
Line 8:      Enter the amount of excise tax that was deducted in determining federal net income. In the event of 
             an over accrual in the prior year that causes the current year’s federal return to report a negative 
             “deduction,” this amount can be reported as a deduction. 
Line 9:      If a taxpayer elects to take the gross premiums tax paid to the Tennessee Department of Commerce 
             and Insurance as a credit against its franchise and excise taxes, the amount of the gross premiums tax 
             expensed for federal purposes that is used as an excise tax credit must be shown here. 
Line 10:     This amount is all tax-exempt interest as shown on the books of the taxpayer, net of disallowed 
             interest expense pursuant to 26 U.S.C. §§ 265 and 291. 
Line 11:     Enter any percentage depletion deducted for federal tax purposes. 
Line 12:     The excess of the fair market value over the book value of property donated must be added to net 
             income. 
Line 13:     The amount of rent that is paid, accrued, or incurred in excess of reasonable rent for real property 
             owned by an affiliate must be added back. Reasonable rent means rent that does not exceed 2% per 
             month of the appraised value for property tax purposes. A taxpayer receiving excess rent, to the 
             extent added back to net earnings by its affiliate, may enter a negative amount on this line. 
Line 14:     Enter any Captive Real Estate Investment Trust Dividends Paid Deduction taken in computing federal 
             income. Do not include dividends paid by a Captive Real Estate Investment Trust owned, directly or 
             indirectly, by a bank, bank holding company or a public REIT. Tenn. Code Ann. § 67-4-2006(b)(1)(O). 
Line 15:     Enter the amount of any pass-through net loss and expense included in the excise tax base by the 
             taxpayer. The pass-through items are reported to the taxpayer on federal Schedule K-1. This 
             adjustment is only made if the entity issuing the K-1 is itself subject to the excise tax and filing a 
             franchise and excise tax return. This adjustment is to prevent the duplicate recognition of the pass- 
             through loss and expense in the excise tax base. Attach Schedule(s) K-1 or a list showing the pass- 
             through entity’s name, FEIN, Tennessee franchise and excise tax account number, and the amount. 
             Note, if an exempt entity under Tenn. Code Ann. § 67-4-2008 is formed as an LLC or partnership, its 
             partners/members would not reverse the pass-through items on their returns. 
Line 16:     Enter an amount equal to five percent (5%) of IRC Section 951A global intangible low-taxed income 
             (GILTI), before any related IRC Section 250 deduction. 
Line 17:     Complete this line if you filed federal Form 8990. Enter on this line the business interest expense you 
             deducted in arriving at the net earnings or loss amount reported on Schedule J, Line 1. Do not include 
             business interest expense amounts that are reported on Sch. J, Line 15. Note: the business interest 
             expense deduction for excise tax purposes is reported on Sch. J, Line 32a. 
Line 18:     Enter all research and experimental expenditures deducted under IRC Section 174 in arriving at the 
             amount reported on Sch. J, Line 1.  See Sch. J, Line 34 instructions for additional information. 
Line 19:     Add Lines 5 through 18. This is the amount of total additions. 
Line 20:     Enter any depreciation under the provisions of IRC Section 168 permitted for excise tax purposes due 
             to Tennessee permanently decoupling from federal bonus depreciation. 
Line 21:     Enter any excess gain or loss reported for federal tax purposes resulting from the basis adjustment 

           resulting from Tennessee permanently decoupling from federal bonus depreciation. 
 Line 22:  Enter all dividends received from corporations in which the entity owns at least 80% of the 
           corporation’s stock. 
 Line 23:  Enter 75% of donations to qualified public school support organizations as defined in Tenn. Code Ann. 
           § 67-4-2006(b)(2)(M) or nonprofit organizations as described in Tenn. Code Ann. § 67-4- 2006(b)(2)(P). 
           See Certification Form - Excise Tax Deduction for Donation to a Qualified Public School Support Group 
           or a Nonprofit Corporation, Association, or Organization. 
 Line 24:  Enter any expenses incurred, other than income taxes, that were not deducted for federal tax 
           purposes but were used as a credit against federal income tax. 
 Line 25:  Enter adjustments provided by Tenn. Code Ann. §§ 67-4-2006(b)(1)(G) and (b)(2)(G)-(H) in relation to 
           federal “safe harbor” lease election permitted under Section 168 of the Economic Recovery Act of 
           1981. If the net adjustment is an increase in taxable income, enter a negative number on this line. 
 Line 26:  Enter the amount from Schedule M, Line 8. 
 Line 27:  Enter intangible expenses paid, accrued, or incurred to an affiliated entity or entities if Line 5 has been 
           completed and  Form IE - Intangible Expense Disclosure is attached to the return. Otherwise, the 
           deduction will be disallowed and a penalty may be assessed. 
 Line 28:  Enter any intangible income from an affiliated business entity to the extent that the affiliate’s 
           corresponding intangible expense was included in the affiliate’s net earnings or loss, but was not 
           deducted on the affiliate’s excise tax return under Tenn. Code Ann. § 67-4-2006(b)(2)(N). 
 Line 29:  Enter bad debts not deducted but allowed by IRC Sections 585 or 593, as that law existed on 
           December 31, 1986. 
 Line 30:  Enter the amount of any pass-through net gain and income included in the excise tax base by the 
           taxpayer. The pass-through items are reported to the taxpayer on federal Schedule K-1. This 
           adjustment is only made if the entity issuing the K-1 is itself subject to the excise tax and filing a 
           franchise and excise tax return. This adjustment is to prevent the duplicate recognition of the gain and 
           income in the excise tax base. Attach Schedule(s) K-1 or a list showing the pass-through entity’s name, 
           FEIN, Tennessee franchise and excise tax account number, and the amount. Note, if an exempt entity 
           under Tenn. Code Ann. § 67-4-2008 is formed as an LLC or partnership, its partners/members would 
           not reverse the pass-through items on their returns. 
 Line 31:  Enter IRC Section 951A global intangible low-taxed income (GILTI), before any related IRC Section 250 
           deduction. 
 Line 32:  Enter the amount of governmental grants included in federal taxable income as a result of the Tax 
           Cuts and Jobs Act of 2017, Pub. L. No. 1 15-97 
 Line 33a: Complete this line if you filed federal Form 8990 and have completed Sch. J, Line 17. 
           1) Enter the current year business interest expense reported on Lines 1 and 4 of your separate entity, 
           pro forma federal Form 8990 plus any business interest expense carryforwards from the 2018 or 2019 
           tax years, to the extent that they were deducted in arriving at your current year business interest 
           expense deduction reported on your pro forma federal Form 8990. Do not deduct any disqualified 
           interest that is disallowed on federal Form 8926, pursuant Section 163(j) as it existed immediately before 
           the enactment of the Tax Cuts and Jobs Act of 2017. 
           2) If you are a partner/member of an entity that files as a partnership on federal Form 1065 but does not 
           file an excise tax return, also include your share of the entity’s current year excess business interest 
           expense from federal Form 8990, Schedule A, Line 43, Column (c) on this line. 
 
 Line 33b: Enter the amount of any remaining 2018 and/or 2019 tax year business interest expense carryforwards 
           available to be taken in future tax years. (This is the amount available after any current year deduction of 
           such carryforwards taken on Line 33a.) The Excise Tax Table of Business Interest Expense Carryforward 
           may be used to determine remaining carryforward interest. 

 Line 34:     For tax years beginning on or after January 1, 2022, enter the amount of research and experimental 
              expenditures allowed by Section 174 of the Internal Revenue Code immediately before enactment of 
              the Tax Cuts and Jobs Act of 2017. Note:  The amount deducted under IRC Section 174 in arriving at the 
              amount reported on Sch. J, Line 1 must be added back on Sch. J, Line 18. 
 Line 35:     Add Lines 20 through 34, excluding Line 33b.  Line 33b is informational only. This is the amount of total 
              deductions. 
 Line 36:     Add Lines 4 and 19, then subtract Line 35. This is the total business income. If the corporation has a 
              net loss, enter on Schedule K, Line 1. 
 Line 37:     Enter apportionment ratio as computed on Schedule SE, Line 14 or Schedule N, Line 14, Column d. If 
              the entity is not entitled to apportion, enter 100%. 
 Line 38:     Multiply Line 36 by Line 37. 
 Line 39:     Enter the amount on Schedule M, Line 9. 
 Line 40:     Enter loss carryover from prior year as shown on Schedule U. Please note that Tennessee loss 
              carryover is computed separately from federal loss carryover. 
 Line 41:     Add Lines 38 and 39, and subtract Line 40. Enter this amount here and on Schedule B, Line 4. This is 
              the excise tax base. 
 
 Schedule K  –Determination of Loss Carryover Available 
 Line 1:      Enter the net loss on Schedule J, Line 36. 
 Line 2:      Enter the total of amounts reported on Schedule J, Lines 22 and 26. 
 Line 3:      Enter the total of amounts reported on Schedule J1, Lines 6 and 7 or on Schedule J2, Line 8. 
 Line 4:      Add Lines 1 through 3. If the net amount is positive, then enter zero, and no loss carryover is available. 
              This is the net reduced loss carryover. 
 Line 5:      Enter apportionment ratio as computed on Schedule SE, Line 14 or Schedule N, Line 14, Column d. If 
              the entity is not entitled to apportion, enter 100%. 
 Line 6:      Multiply Line 4 by Line 5. This is the current year loss carryover available. 

 Schedule SE  –Financial Institution Apportionment Schedule for Excise Tax Purposes 
 Values in the apportionment schedules must be reported at the same value used for federal income tax purposes. 
 Lines 1-12: Enter the applicable receipts for each line.  See Tenn. Code Ann. § 67-4-2013(b) for the allocation 
             requirements used to determine Tennessee receipts. 
 Line 13:    Add Lines 1 through 12. 
 Line 14:    Divide the total Tennessee receipts in the first column by the total everywhere receipts in the second 
             column.  Enter this ratio here and on Schedule J, Line 37. 
 
 Schedule N  – Apportionment  –Captive REITs 
 Values in the apportionment schedules must be reported at the same value used for federal income tax purposes. 
 Line 1-3:   Complete all four columns for each line using the original tax-basis cost of the tangible property. 
             Beginning and end of year values are reported in the respective columns for property located in 
             Tennessee and for all property located everywhere. 
 Line 4:     Include all types of inventory on this line. 
 Line 5:     Enter other tangible assets and supplies not included in the other lines. 
 Line 6:     Enter the taxpayer’s percentage of ownership (shown on federal Schedule K -1) multiplied by the 
             amount of real and tangible personal property shown on the balance sheet of an entity treated as a 
             partnership for federal tax purposes. Only include on this line the taxpayer’s ownership share of a 
             partnership’s property if the partnership itself is not required to file its own franchise and excise tax 
             return. 
 Line 7:     Add Lines 1 through 6. 
 Line 8:     Add Lines 7(a) and 7(b) and divide by two. 
 Line 9:     Enter the year-end value of rented property, determined by multiplying the annual rental rate by 
             eight.  The value of owned or leased mobile/moveable property will be determined based on the 
             percentage of time the property was within the state during the tax period.  However, the value of an 
             automobile/truck assigned to a traveling employee is entirely sourced to Tennessee if the vehicle is 
             registered in this state or if the employee’s compensation is assigned to Tennessee for purposes of 
             the payroll factor. 
 Line 10:    Add Lines 8 and 9 and enter in the appropriate columns.  Divide 10(a) by 10(b) to calculate the 
             franchise and excise tax ratios. 
 Line 11:    Enter the total compensation paid during the taxable period in Tennessee on Line 11(a) and the total 
             compensation paid everywhere during the taxable period on Line 11(b).  Divide 11(a) by 11(b) to 
             calculate the franchise and excise tax payroll ratios. 
 Line 12:    Enter the total business gross receipts during the taxable period in Tennessee on Line 12(a) and the 
             total everywhere business gross receipts during the taxable period on Line 12(b).  Divide 12(a) by 12(b) 
             to calculate the franchise and excise tax sales ratios. 
 Line 13:    Add Lines 10 and 11 and Line 12 multiplied by three. 
 Line 14:    Divide Line 13 by five or by the number of factors with everywhere values greater than zero. Enter 
             here and on Schedule F1, Line 2 (the franchise tax ratio) and Schedule J, Line 37 (the excise tax ratio). 
 
 Schedule M  –Nonbusiness Earnings 
 Lines 1-7:  Income that meets the statutory definition of nonbusiness earnings is uncommon. Income that does 
             meet that definition and related expenses should be reported here. Deductions for taxpayer expenses 
             are generally related to both business and nonbusiness earnings. These expenses include, but are not 
             limited to, administrative costs, taxes, insurance, repairs, maintenance, and depreciation. In the 
             absence of evidence to the contrary, it is assumed that the expenses related to nonbusiness rental 
             earnings will be an amount equal to 50% of such earnings and that expenses related to other 
             nonbusiness earnings will be an amount equal to 5% of such earnings. See TENN. COMP. R. & REG. 1320- 
             06-01-.23(3). 
 Line 8-9:   Add Lines 1 through 7 to arrive at net nonbusiness earnings and net nonbusiness earnings directly 
             allocated to Tennessee.  Enter net nonbusiness earnings on Schedule J, Line 26, and enter net 
             nonbusiness earnings directly allocated to Tennessee on Schedule J, Line 39. 

 Schedule T  –Industrial Machinery and Research and Development Tax Credit 
 Industrial machinery includes everything included under the industrial machinery definition in Tenn. Code Ann. § 
 67-6-102, computer and related equipment listed in Tenn. Code Ann. § 67-4-2009(3)(A)(ii) purchased as part of the 
 required capital investment made in order to qualify for the job tax credit, and certain research and development 
 equipment meeting the requirements of TENN. COMP. R. & REG. 1320-05-01-.128. This regulation requires that the 
 ultimate goal of the research and development must be one of the following: 
 • basic research in a scientific field of endeavor; 
 • advancing knowledge or technology in a scientific or technical field of endeavor; 
 • the development of a new product, whether or not the new product is offered for sale; 
 • the improvement of an existing product, whether or not the improved product is offered for sale; 
 • the development of new uses of an existing product, whether or not a new use is offered as a rationale to 
   purchase the product; or 
 • the design and development of prototypes, whether or not a resulting product is offered for sale. 
 
 Line 1:  Enter the purchase price of industrial machinery or research and development equipment purchased or 
   leased during the tax period. 
 Line 2:  Enter 1% unless the taxpayer has filed an Enhanced Industrial Machinery Credit Business Plan and received 
   prior approval for a higher rate under Tenn. Code Ann. § 67-4- 2009 (3)(I) for investments in excess of 
   $100,000,000. 
 Line 3:  Multiply Line 1 by Line 2. 
 Line 4:  Enter the amount of credit carryover available from Schedule V. 
 Line 5:  Add Lines 3 and 4. 
 Line 6:  Add Schedule A, Line 3 and Schedule B, Line 5. 
 Line 7:  Enter 50% of Line 6 unless the taxpayer has prior approval from the Commissioner of Revenue and the 
   Commissioner of Economic and Community Development for a higher limitation under Tenn. Code Ann. § 
   67-4-2009(3)(H). 
 Line 8:  Add Schedule A, Line 3 and Schedule B, Line 5. 
 Line 9:  Add credits without the provision for carryover from Schedule D, Lines 1 through 4 and Schedule D, Line 7. 
 Line 10:  Subtract Line 9 from Line 8. 
 Line 11:  Enter the least of Lines 5, 7, or 10. Also enter this amount on Schedule D, Line 5. 
 Line 12: Enter the amount calculated on the Industrial Machinery Credit Recapture Worksheet, Part 2, Line 16. 
 Line 13:  Enter the amount calculated on the Industrial Machinery Credit Recapture Worksheet, Part 2, Line 17.  Also 
   enter this amount on Schedule B, Line 6. 

 Schedule U  –Schedule of Loss Carryover 
  Net operating losses may be carried forward and used to offset income for up to 15 years or until fully used, 
  whichever occurs first. 
 
 Column Headings 
 • Period Ended  –Enter the ending date of the tax period in which the loss was incurred. List the oldest period 
   first. 
 • Original Return or as Amended  –Enter the amount of loss created in the corresponding tax period. If this 
   amount has been adjusted by the Department, or otherwise amended, enter the corrected amount. If there is 
   an adjustment that has not been previously reported to us, simply changing this line will not adjust our records. 
   Adjustments may be made by filing a form FAE170 with the amended box checked, filing Franchise and Excise Tax 
   Federal Income Revision form, or by correspondence with the Department. 
 • Used in Prior Year(s)  –Enter the cumulative amount of loss carryover that has previously been used. The oldest 
   loss within the 15 year carryover period is used first. 
 • Expired  –Enter the amount of loss carryover that was not used within the 15 year carryover period. 
 • Loss Carryover Available  –Enter each year’s carryover amount less amounts used or expired. Enter the total loss 
   carryover on Schedule J, Line 38. 
 
 Schedule V  –Industrial Machinery Credit Carryover 
  Industrial Machinery Credit may be carried forward and used to offset franchise and excise tax for up to fifteen 
  years or until fully utilized, whichever occurs first. 
 
 Column Headings 
 • Period Ended  –Enter the ending date of the tax period in which the credit originated. List the oldest period first. 
 • Original Return or as Amended  –Enter the amount of credit created in the corresponding tax period. If this 
   amount has been adjusted by the Department, or otherwise amended, enter the corrected amount. If there is 
   an adjustment that has not been previously reported to us, simply changing this line will not adjust our records. 
   Adjustments must be made on the applicable Departmental form (amended FAE170, Federal Income Revision 
   form, etc.) or by correspondence. 
 • Used in Prior Year(s)  –Enter the cumulative amount of credit that has previously been used. The oldest credit 
   within the 15 year carryover period is used first. 
 • Expired or Recaptured  –Enter the amount of credit that was not used within the 15 year carryover period. 
 • Industrial Machinery Credit Carryover Available  –Enter each year’s carryover amount less amounts used or 
   expired. Enter the total industrial machinery credit carryover on Schedule T, Line 4.