New tax incentive policy to be proposed

CHATTANOOGA, Tenn. (WDEF)- The Chattanooga Chamber of Commerce along with city staff is pushing for a new tax incentive policy.

Right now, both the Chattanooga City Council and Hamilton County Commission both have to approve any tax breaks for new companies coming into the city.

This makes Chattanooga the only city in Tennessee where both the city and county have to approve a tax break.

The proposed new policy would allow certain industries such as manufacturing, professional services, and companies who relocate their headquarters to Chattanooga, to have tax breaks up to a certain cap approved solely by the Industrial Review Board after a recommendation from the Chamber of Commerce.

Proponents say this would streamline the process of getting new businesses in Chattanooga and make the city even more competitive.

Jermaine Freeman, the Chief of Staff for Chattanooga mayor Tim Kelly, said, “We are not asking for the City Council to give up its ability to review PILOTS… Are there certain types of key industries that the Council is comfortable delegating responsibilities to this board for, if we can all agree that these are key industries that we are working to recruit to the city of Chattanooga, grow within the City of Chattanooga, and if these projects meet certain prescribed investments and job creation thresholds.”

Currently the policy has not been set for a vote.