Doing Business Here
Incentives
Tennessee, and particularly Washington County, offers a variety of business tax advantages and incentives that are designed to attract investment, encourage job creation, and foster economic development. These incentives are vital to making the region competitive for companies considering relocation or expansion. Below is an overview of the key tax advantages and incentive programs available at both the state and local levels.
| Payment in Lieu of Taxes (PILOT) Program |
|---|
| Washington County offers PILOT agreements. Under this program, eligible companies that make significant capital investments and create jobs may negotiate reductions in property taxes for a defined period, providing substantial savings during the early stages of operation. PILOT agreements typically apply to new facilities, expansions, or significant equipment purchases, and the terms are based on the number of jobs created, wages paid, and overall economic impact. |
| Tax Increment Financing (TIF) |
|---|
| TIF agreements allow eligible businesses to finance development projects through future increases in property tax revenue generated by the new development. TIF can be used to cover the costs of infrastructure improvements, land acquisition, and other project-related expenses. |
| Foreign Trade Zones (FTZ) |
|---|
| Foreign Trade Zone 204, located in nearby Tri-Cities. FTZs offer businesses the ability to import goods, manufacture products, and export finished goods without being subject to certain customs duties and tariffs. This can be particularly valuable for companies in manufacturing and logistics. |
Local Business Development Programs
Workforce
Development Programs
Through partnerships with ETSU and local high schools, Washington County supports various workforce development initiatives, such as work-based learning, internships, and apprenticeship programs that help companies find skilled labor at a lower cost.
Utility
Incentives
Local utilities may offer rebates and discounts on services like electricity, water, and natural gas, particularly for manufacturers or large-scale energy users.
New Market
Tax Credits
A federal incentive designed to encourage private investment by providing investors with a tax credit worth 39% of the total investment over a seven-year period. This program helps stimulate economic growth, create jobs, and revitalize underserved areas.
Relocating a Business?
Relocating a manufacturing business to Washington County, Tennessee, presents an exceptional opportunity for companies looking to thrive in a supportive and cost-effective environment. Washington County combines the advantages of Tennessee’s business-friendly tax structure—such as no state income tax on business income, competitive tax incentives, and workforce development initiatives—with a strategic location in the Tri-Cities region. With access to a skilled labor force trained through partnerships with local educational institutions like East Tennessee State University and robust career and technical education programs, manufacturers will find a ready-made talent pipeline to support their operations.
The county’s commitment to economic growth is further bolstered by local incentives such as Payment in Lieu of Taxes (PILOT) agreements and Tax Increment Financing (TIF), which can significantly reduce property tax liabilities and development costs for expanding or relocating businesses. Additionally, the presence of Foreign Trade Zone 204 provides advantageous conditions for companies involved in global trade, offering the ability to import, manufacture, and export goods while minimizing customs duties and tariffs.
Coupled with affordable real estate, a high quality of life, and proximity to major transportation corridors like I-26 and I-81, Washington County stands out as an ideal location for manufacturers seeking to optimize operations, reduce costs, and ensure long-term success in a dynamic and growing region.
(include contact information about relocating and link out to more information about workforce, incentives, and infrastructure.)
Skilled Workforce
Northeast Tennessee’s skilled workforce is a product of the region’s strong educational infrastructure and close collaboration between schools, colleges, technical institutions, and local businesses. ETSU, Northeast State, TCAT Elizabethton, and the CTE programs in local schools play an essential role in preparing students for successful careers in key industries such as healthcare, manufacturing, and technology. This integrated approach to workforce development ensures that Washington County and the surrounding area have the talent necessary to support economic growth and attract new businesses to the region.
Expanding a Business?
Expanding a business in Washington County, TN, offers access to a growing economy with a strong local workforce and a supportive business community. Additionally, the region boasts excellent infrastructure and a strategic location near major transportation networks, making it ideal for growth.
Major Employers
Washington County and Johnson City have a vibrant, diverse economy supported by key industries that offer plentiful career opportunities and drive regional growth. Major employment sectors include healthcare, education, manufacturing, and more—each playing a crucial role in shaping the area’s economic landscape.
| Top County Employers | Estimated Employees | City |
|---|---|---|
| East Tennessee State University | 3,541 | Johnson City |
| Veterans Health Administration | 2,400 | Mountain Home |
| Advanced Call Center Technologies, LLC | 2,000 | Johnson City |
| Johnson City Medical Center | 2,000 | Johnson City |
| Ballad Health | 1,300 | Johnson City |
| Washington County Board of Education | 1,200 | Jonesborough |
| Johnson City Board of Education | 1,100 | Johnson City |
| American Water Heater Company | 1,097 | Johnson City |
| State of Franklin Healthcare Associates | 1,001 | Johnson City |
| City of Johnson City | 1,000 | Johnson City |
Key Industries
Healthcare
As a regional hub for healthcare, Washington County and Johnson City host numerous medical facilities, specialty clinics, and wellness centers that provide advanced care to the community and surrounding areas. The healthcare sector is one of the largest employers in the region, offering a wide range of roles from patient care and support services to research and administration. With hospitals, medical centers, and private practices, this sector ensures high-quality healthcare while supporting thousands of rewarding careers.
Education
Education is a cornerstone of the local economy, offering diverse job opportunities across K-12 schools, higher education institutions, and specialized training centers. Washington County and Johnson City are home to both public and private educational institutions that contribute to workforce development and lifelong learning. Our local university and technical schools prepare students with career-ready skills, and they work closely with area businesses to foster a skilled, adaptable workforce. Jobs in this sector range from teaching and academic support to research and administrative positions.
Manufacturing
The manufacturing sector remains a vital part of the economy in Washington County, supporting stable, well-paying jobs. Our community boasts a variety of manufacturing facilities that produce everything from automotive components to advanced materials, supporting a range of skilled trades and technical professions. Advanced manufacturing and automation are opening up even more possibilities, making this sector a key player in our economic growth and development.
Competitive Business Taxes
Washington County and Johnson City are committed to creating a business-friendly environment with competitive tax rates that support growth and profitability. Our tax structure is designed to attract and retain businesses, offering one of the lowest overall tax burdens in the nation. With no state income tax and various incentives for businesses in key industries, we provide an attractive landscape for both startups and established companies. By keeping business taxes competitive, we empower companies to reinvest in their growth, create jobs, and contribute to the region’s economic vitality.
| Property Tax | |
|---|---|
| Property Tax Rate (County) | $2.15 |
| State Property Tax | None |
| Assessment Ratio | |
|---|---|
| Residential Property | 25% |
| Farm Property | 25% |
| Commercial/Industrial Property | 40% |
| Public Utility Property | 55% |
| Business Personal Property | 30% |
| State Tax | |
|---|---|
| State Income Tax on Wages | None |
| Interest from Bonds, Notes, and Dividends from Stock | None |
| Excise Tax | 6.5% of TN Taxable Income |
| Franchise Tax | 0.25% of the greater of net worth or real and tangible property in TN (min. tax $100) |
| Unemployment Insurance Tax | 2.7% of the first $7,000 in wages for new employers |
| Sales Tax | |
|---|---|
| State Sales Tax Rate | 7.00% |
| County Sales Tax Rate | 2.5% |
| Local Sales Tax Collections (FY 2021) | $72,933,603 |
| Local Sales Tax Collections (FY 2020) | $63,755,627 |
| Local Sales Tax Collections Growth (FY 2020 – FY 2021) | 14.40% |
| State Bond Ratings | |
|---|---|
| Moody’s | Aaa |
| Standard & Poor’s | AAA |
| Fitch | AAA |
| Debt Per Capita | |
|---|---|
| State Debt per Capita | $992 (Lowest in U.S.) |
| County Debt per Capita | $1,080 |
Sources:
Tennessee Comptroller of the Treasury (2022)
Tennessee Department of Revenue (2022)
The Tax Foundation (2022)
Infrastructure
With a well-developed infrastructure, Washington County is well-positioned to support diverse industries and attract new investments, making it an ideal location for manufacturers seeking growth and opportunity.
Transportation
Washington County, TN, benefits from robust transportation infrastructure, including access to major highways like I-26, regional airports, and rail systems, facilitating efficient connectivity for businesses and commerce.
Utilities
Washington County, TN, offers reliable and modern utilities infrastructure, including access to affordable energy, high-speed internet, and water services, supporting both residential and business needs.
Broadband
Washington County, TN, is equipped with advanced broadband infrastructure, providing high-speed internet access that supports business innovation, remote work, and educational opportunities.
Child Care
Washington County, TN, offers a growing network of quality child care facilities and early education programs, supporting families and contributing to a strong, dependable workforce.
Discover
Opportunities
Join us in Washington County, where opportunity meets community. Discover why so many businesses are choosing to invest and grow in our region.