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2025 Form FAE170 Franchise and Excise Tax Return with Schedules

Preparer's Email Address ZIP Code State Telephone Date Preparer's PTIN City Tax Preparer's Signature Preparer's Address Title Date and belief, it is true, correct, and complete. Taxpayer's Signature Under penalties of perjury, I declare that I have examined this report, and to the best of my knowledge Power of Attorney - Check YES if this taxpayer's signature certifies that this tax preparer has the authority to execute this form on behalf of the taxpayer and is authorized to receive and inspect confidential tax information and to perform any and all acts relating to respective tax matters. YES 2025 Franchise and Excise Tax Return

Schedule A - Computation of Franchise Tax

RV-R0011001 (9/25)

Round to the nearest dollar

  1. Total net worth Schedule F1, Line 5 or Schedule F2, Line 3 ....................................................................................... (1)
  2. Taxpayer electing to calculate franchise tax based on property measure - enter total from Schedule G Line 15.
  3. Franchise tax (25¢ per $100 or major fraction thereof on the greater of Lines 1 or 2; minimum $100) .............. (3)

Schedule B - Computation of Excise Tax

  1. Income subject to excise tax from Schedule J, Line 39 ................................................................................................ (4)
  2. Recapture of tax credit (Schedule T, Line 13) and additional excise tax on certified distribution sales .............. (6)

Schedule C - Computation of Total Tax Due or Overpayment

  1. Total franchise and excise taxes (add Lines 3 and 7)............................................................. (8)
  2. Total credit from Schedule D, Line 10 (cannot exceed Schedule C, Line 8) ........................ (9)
  3. Net tax (subtract Line 9 from Line 8; if Line 9 exceeds Line 8, enter zero here) ................ (10)
  4. Total payments from Schedule E, Line 7 ................................................................................. (11)
  5. Penalty on estimated franchise and excise tax payments ....................................................................................... (14)
  6. Interest on estimated franchise and excise tax payments ...................................................................................... (15)
  7. Total amount due (overpaid) (add Lines 10, 12, 13, 14, and 15, subtract Line 11) ................................................ (16)

If overpayment reported on Line 16, complete A and/or B below: A. Credit to next year's tax $ B. Refund $

FOR OFFICE USE ONLY

FAE Tax Year Beginning Account Number Check all that apply: a) Amended return Tax Year Ending FEIN b) Final return c) Public Law 86-272 applied to excise tax d) Taxpayer has made an election to calculate net worth per the provisions of Tenn. Code Ann. § 67-4-2103(g)-(i) e) Taxpayer has filed the prescribed form to revoke its election made per Tenn. Code Ann. § 67-4-2103(g)-(i) f) Annualized income installment method for quarterly estimates election g) Taxpayer has filed for federal extension h) Three-factor apportionment election i) Telecom Qualified Member NAICS SOS Control Number Legal Name Mailing Address City State ZIP Code Date Tennessee operations began (see instructions)

Schedule D - Schedule of Credits

  1. Gross Premiums Tax Credit (cannot exceed Schedule C, Line 8) .......................................................................................(1)
  2. Green Energy Tax Credit from business plans filed prior to July 1, 2015..........................................................................(2)
  3. Broadband Internet Access Tax Credit carryover for service providers............................................................................(4)
  4. Industrial Machinery and Research and Development Tax Credit from Schedule T, Line 11 ........................................(5)
  5. Additional Annual Job Tax Credit from Schedule X, Line 38................................................................................................(7)
  6. Qualified Production Credit from Schedule QP, Line 12................................................................................ (8)
  7. Employer Credit for Paid Family and Medical Leave from Schedule PL .............................................................................(9)
  8. Total credit (add Lines 1 through 9; enter here and on Schedule C, Line 9) ......................................................................(10)

Schedule E - Schedule of Required Quarterly Installments and Payments Computation of Franchise Tax

Schedule F1 - Non-Consolidated Net Worth

  1. Net worth (total assets less total liabilities) ...........................................................................................................................(1)
  2. Indebtedness to or guaranteed by parent or affiliated corporation (cannot be a deduction)........................................(2)
  3. Franchise tax apportionment ratio (Schedules N, N1, O, P, or R if applicable or 100%) ..................................................(4) %
  4. Total (multiply Line 3 by Line 4; enter here and on Schedule A, Line 1).............................................................................(5)

Schedule F2 - Consolidated Net Worth

Schedule F2 is to be completed only if the Consolidated Net Worth Election Registration Application has been filed.

  1. Consolidated net worth (total assets less total liabilities of the affiliated group) .............................................................(1)
  2. Franchise tax apportionment ratio (Schedule 170NC, 170NC1, or 170SF)........................................................................(2) %
  3. Total (multiply Line 1 by Line 2; enter here and on Schedule A, Line 1).............................................................................(3)

Schedule H - Gross Receipts

  1. Gross receipts or sales per federal income tax return ..........................................................................................................(1)

Required Quarterly Installments Amount Paid

  1. Overpayment from previous year, if available ................................................................................................................ (1)
  2. First quarterly estimate .............................................................................................. (2a) (2b)
  3. Second quarterly estimate ......................................................................................... (3a) (3b)
  4. Third quarterly estimate............................................................................................. (4a) (4b)
  5. Fourth quarterly estimate .......................................................................................... (5a) (5b)
  6. Total payments (add Lines 1 through 6; enter here and on Schedule C, Line 11) ...................................................... (7)

Taxable Year Taxable Name Account No./FEIN

Schedule I - Disregarded Entities

List all disregarded Single Member Limited Liability Companies included in this tax return under the provisions of Tenn. Code Ann. § 67-4-2106(c): Entity No. Name Federal Employer Identification Number Tennessee Secretary of State Control Number State in which Chartered or Organized Owned by Entity No. Ownership Percentage

  1. Common Parent Corporation

Computation of Excise Tax

Schedule J1 - Computation of Net Earnings for Entities Treated as Partnerships

Additions:

  1. Ordinary income or loss (federal Form 1065, Line 23) ........................................................................................................(1)
  2. Income items specifically allocated to partners, including guaranteed payments to partners ......................................(2)
  3. Any net loss or expense distributed to a publicly traded REIT ..........................................................................................(3)

Deductions:

  1. Expense items specifically allocated to partners not deducted elsewhere .......................................................................(5)
  2. 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 (if negative, enter zero) (include on
  3. Amount of contribution to qualified pension or benefit plans of any partner or member, including all IRC 401 plans (include on Schedule K, Line 3) .................................................................................................................(7)
  4. Any net gain or income distributed to a publicly traded REIT ............................................................................................(8)
  5. Any loss on the sale of an asset sold within 12 months after the date of distribution ....................................................(9)
  6. Total deductions (add Lines 5 through 9)............................................................................................................................ (10)
  7. Total (subtract Line 10 from Line 4; enter here and on Schedule J, Line 1) .................................................................... (11)

Schedule J2 - Computation of Net Earnings for a Single Member LLC Filing as an Individual

Additions:

  1. Business Income or loss from federal Form 1040, Schedule C ...........................................................................................(1)
  2. Business Income or loss from federal Form 1040, Schedule D...........................................................................................(2)
  3. Business Income or loss from federal Form 1040, Schedule E ...........................................................................................(3)
  4. Business Income or loss from federal Form 1040, Schedule F............................................................................................(4)
  5. Business Income or loss from federal Form 4797 ................................................................................................................(5)

Deductions:

  1. Amount subject to self-employment taxes distributable or paid to the single member (if negative, enter zero; include on Schedule K, Line 3) .............................................................................................................................(8)
  2. Total (subtract Line 8 from Line 7; enter here and on Schedule J, Line 1) .........................................................................(9)

Schedule J3 - Computation of Net Earnings for Entities Treated as Subchapter S Corporations

Additions:

  1. Ordinary income or loss (federal Form 1120S, Line 22) .......................................................................................................(1)
  2. Income items to extent includable in federal income were it not for "S" status election ...............................................(2)

Deductions:

  1. Expense items to extent includable in federal expenses were it not for "S" status election ..........................................(4)
  2. Any loss on the sale of an asset sold within 12 months after the date of distribution ....................................................(5)
  3. Total (subtract Line 6 from Line 3; enter here and on Schedule J, Line 1) ......................................................................(7)

Schedule J4 - Computation of Net Earnings for Entities Treated as Corporations and Other Entities

Additions:

  1. Taxable income or loss before net operating loss deduction and special deductions
  2. a. REIT taxable income before net operating loss deduction and special deductions (federal Form b. REIT deduction for dividends paid (federal Form 1120-REIT, Line 22b) ................... (2b) c. REIT taxable income after dividends paid deduction (subtract Line 2b from Line 2a) ...............................................(2c)
  3. Unrelated business taxable income (federal Form 990-T, Line 5) ......................................................................................(3)
  4. Contribution carryover from prior period(s)..........................................................................................................................(5)
  5. Capital gains offset by capital loss carryover or carryback ..................................................................................................(6)

Deductions:

  1. Contributions in excess of amount allowed by federal government .................................................................................(8)
  2. Portion of current year's capital loss not included in federal taxable income ..................................................................(9)
  3. Total (subtract Line 10 from Line 7; enter here and on Schedule J, Line 1) .................................................................... (11)

Schedule J - Computation of Net Earnings Subject to Excise Tax

  1. Adjusted federal income or loss (enter amount from Schedule J1, J2, J3, or J4) ...................................................................... (1)

Additions:

  1. Intangible expenses paid, accrued, or incurred to an affiliated business entity or entities deducted for
  2. Any depreciation under the provisions of IRC Section 168 not permitted for excise tax purposes due to

Tennessee decoupling from federal bonus depreciation for assets purchased on or before

  1. Gain on the sale of an asset sold within 12 months after the date of distribution to a nontaxable entity ......................... (4)
  2. Tennessee excise tax expense (to the extent reported for federal income tax purposes) ................................................... (5)
  3. Gross premiums tax deducted in determining federal income and used as an excise tax credit........................................ (6)
  4. Interest income on obligations of states and their political subdivisions, less allowable amortization .............................. (7)
  5. Depletion not based on actual recovery of cost.......................................................................................................................... (8)
  6. Excess fair market value over book value of property donated................................................................................................ (9)
  7. Net loss or expense received from a pass-through entity subject to the excise tax (attach schedule) .............................(11)
  8. An amount equal to five percent of IRC Section 951A global intangible low-taxed income
  9. Business interest expense deducted in arriving at the amount reported on Sch. J, Line 1. Only complete if federal Form 8990 was filed. See instructions .......................................................................................................... (13)
  10. Research and experimental expenditures deducted under IRC Section 174 in arriving at the amount
  11. Total additions (add Lines 2 through 14)....................................................................................................................................(15)

Deductions:

  1. Any depreciation under the provisions of IRC Section 168 permitted for excise tax purposes due to

Tennessee decoupling from federal bonus depreciation for assets purchased on or before

  1. Any excess gain (or loss) from the basis adjustment resulting from Tennessee decoupling from federal bonus depreciation for assets purchased on or before December 31, 2022 (or other federal/state basis difference - see
  2. Dividends received from corporations at least 80% owned ...................................................................................................(18)
  3. Donations to qualified public school support groups and nonprofit organizations ............................................................(19)
  4. Any expense other than income taxes not deducted in determining federal taxable income for which a credit against the federal income tax was allowed................................................................................................................(20)
  5. Adjustments related to the safe harbor lease election (see instructions) .............................................................................(21)
  6. Nonbusiness earnings (from Schedule M, Line 8).....................................................................................................................(22)
  7. Intangible expenses paid, accrued, or incurred to an affiliated entity or entities (from Form IE, Line 4)

Attach Form IE - Intangible Expense Disclosure ........................................................................................................................(23)

  1. Intangible income from an affiliated business entity or entities if the corresponding intangible expenses have not been deducted by the affiliate(s) under Tenn. Code Ann. § 67-4-2006(b)(2)(N) ..................................(24)
  2. Net gain or income received from a pass-through entity subject to the excise tax (attach schedule)...............................(25)
  3. Deductible Grants from governmental units.............................................................................................................................(26)
  4. IRC Section 951A global intangible low-taxed income..............................................................................................................(27)
  5. a. Business interest expense currently deductible. See instructions ...................................................................................(28a) b. Business interest expense carryforward available for future tax years. ........................................................................ (28b)
  6. Research and experimental expenditures currently deductible. See instructions. ............................................................ (29)
  7. Total deductions (add Lines 16 through 29, excluding 28b). ................................................................................................. (30)

Computation of Taxable Income

  1. Total business income (loss) (add Lines 1 and 15, subtract Line 30; if loss, enter on Schedule K, Line 1). ......................... (31)
  2. Excise tax standard deduction (enter the lesser of Line 31 or $50,000; if negative, enter zero). ........................................... (32)
  3. Excise tax optional deduction addback (see instructions; attach schedule). ........................................................................... (33)
  4. Adjusted total business income (loss) (subtract Line 32 from 31, add Line 33). ...................................................................... (34) . 35. Excise tax apportionment ratio (Schedules N, N1, O, P, or R if applicable or 100%)............................................................... (35) %
  5. Apportioned business income (loss) (multiply Line 34 by Line 35) ............................................................................................ (36)
  6. Nonbusiness earnings directly allocated to Tennessee (from Schedule M, Line 11)…………………………………………………………(37)
  7. Loss carryover from prior years (from Schedule U)………………………………………………………………………………………………………….(38)
  8. Subject to excise tax (add Line 36 and 37, subtract Line 38; enter here and on Schedule B, Line 4)......................................(39)

Schedule K - Determination of Loss Carryover Available

Additions:

  1. Amounts reported on Schedule J, Lines 18, 22, and 33 ............................................................................................................... (2)
  2. Amounts reported on Schedule J1, Lines 6 and 7, or Schedule J2, Line 8 ................................................................................ (3)
  3. Reduced loss (add Lines 1 through 3; if net amount is positive, enter zero)........................................................................... (4)
  4. Excise tax apportionment ratio (Schedules N, N1, O, P, or R if applicable or 100%) ............................................................. (5) %
  5. Current year loss carryover available (multiply Line 4 by Line 5).............................................................................................. (6)

Schedule M - Nonbusiness Earnings Allocation

Allocation and apportionment schedules may be used only by taxpayers doing business outside the state of Tennessee within the meaning of Tenn. Code Ann. §§ 67-4-2010 and 67-4-2110. The burden is on the taxpayer to show that the taxpayer has the right to apportion. If all earnings are business earnings as defined below, do not complete this schedule. Any nonbusiness earnings, less related expenses, are subject to direct allocation and should be reported in this schedule. "Business Earnings" - 1) earnings arising from transactions and activity in the regular course of the taxpayer's trade or business, or

  1. earnings from tangible and intangible property if the acquisition, use, management, or disposition of the property constitute s an integral part of the taxpayer's regular trade or business operations.

Earnings which arise from the conduct of the trade or trades or business operations of a taxpayer are business earnings, and the taxpayer must show by clear and cogent evidence that particular earnings are classifiable as nonbusiness earnings. A taxpayer may have more than one regular trade or business in determining whether income is business earnings. "Nonbusiness Earnings" - all earnings other than business earnings Description of Nonbusiness Earnings (If further description is necessary, see below) Gross Amounts *Less Related Expenses Net Amounts Net Amounts Allocated Directly to Tennessee Total nonbusiness earnings (Enter here and on Schedule J, Line22) Nonbusiness earnings allocated directly to Tennessee Excise tax standard deduction (Enter $50,000 less amount reported on Schedule J, Line 32; cannot exceed Line 9)

  1. Net nonbusiness earnings allocated directly to Tennessee (Subtract Line 10 from Line 9; enter on

Schedule J, Line 37.) If necessary, describe source of nonbusiness earnings and explain why such earnings do not constitute business earnings as defined above. Enumerate these items to correspond with items listed above. *As a general rule, the allowable deductions for expenses of a taxpayer are related to both business and nonbusiness earnings. Items such as administrative costs, taxes, insurance, repairs, maintenance, and depreciation are to be considered. In the absence of evidence to the contrary, it is assumed that 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. & Regs. 1320-06-01.23(3)).

Schedule N - Apportionment - Standard

  1. Sales factor (business gross receipts) (Enter franchise tax apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on

Schedule J, Line 35.) ..... In Tennessee Total Everywhere Ratio Schedule N1 - Apportionment - Taxpayers electing to use property, payroll, and triple weighted sales method and Telecom Qualified Members, pursuant to Tennessee Code Annotated, Section 67-4-2012(a) Property In Tennessee Total Everywhere Use original cost of assets a. Beginning of Taxable Year b. End of Taxable Year a. Beginning of Taxable Year b. End of Taxable Year

  1. Land, buildings, leaseholds, and improvements ..........
  2. Machinery, equipment, furniture, and fixtures ..............
  3. Automobiles and trucks...........................................................
  4. Inventories and work in progress .......................................
  5. Prepaid supplies and other property .................................
  6. Ownership share of real and tangible property of a partnership that does not file a return ..................
  7. Excise tax total (add Lines 1 through 6) .............................
  8. Franchise tax total (subtract Line 8 from Line 7) ...........
  9. Excise tax average value (add Lines 7(a) & (b), divide by two) ...
  10. Franchise tax average value (add Lines 9(a) & (b), divide by two)
  11. Rented property (rent paid x 8) ............................................ a. b. a. b. a. b. a. b.

Use triple weighted sales factor a. In Tennessee b. Total Everywhere c. Franchise Ratio d. Excise Ratio

  1. Excise tax property factor (add Lines 10 and 12)...........
  2. Franchise tax property factor (add Lines 11 and12).....
  3. Sales factor (business gross receipts) ................................
  4. Total ratios (add Lines 13 - 15 and (Line 16 x three))
  5. Apportionment ratio (divide Line 17 by five, or by the number of factors with everywhere values greater than zero)

(Enter franchise tax apportionment ratio on Sch. F1, Line 4. Enter excise tax apportionment ratio on Sch. J, Line 35.) ........... % %

Schedule O - Apportionment - Common Carriers (railroads, motor carriers, pipelines and barges)

  1. Total franchise mileage (odometer miles) ......................................................................
  2. Tennessee gross intrastate receipts and interstate gross receipts everywhere........
  3. Total ratios (add Lines 1 and 2) ........................................................................................ _

In Tennessee Total Everywhere Ratio

  1. Apportionment ratio (divide Line 3 by two, or by the number of factors with everywhere values greater than zero) (Enter franchise tax apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 35.) ...............................................................

Schedule P - Apportionment - Air Carriers

  1. Air miles flown (Include in Tennessee column only air miles flown on flights either originating from or ending in Tennessee or both).........................................................
  2. Total ratios (add Lines 1 and 2) ........................................................................................ _

In Tennessee Total Everywhere Ratio

  1. Apportionment ratio (divide Line 3 by two, or by the number of factors with everywhere values greater than zero) (Enter franc hise tax apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 35.) ............................................................... %

Schedule R - Apportionment - Air Express Carriers

  1. Air miles flown and ground miles traveled (Include in Tennessee column only air miles flown on flights either originating from or ending in Tennessee or both.

Include only ground miles traveled with respect to actual common carriage of persons or property for hire.)........................................................................................... In Tennessee Total Everywhere Ratio

  1. Apportionment ratio (divide Line 3 by two, or by the number of factors with everywhere values greater than zero) (Enter franc hise tax apportionment ratio on Schedule F1, Line 4. Enter excise tax apportionment ratio on Schedule J, Line 35.) .............................................................. %

Schedule T - Industrial Machinery and Research and Development Equipment Tax Credit

Part 1: Tax Credit Computation

Franchise and excise taxes may be reduced by a credit on industrial machinery and research and development equipment purchased during the tax period covered by the return and located in Tennessee. The credit is generally computed at 1% of the purchase price of qualified industrial machinery and research and development equipment. The credit taken on any return cannot exceed 50% of the current year's franchise and excise tax liability, but any unused credit may be carried forward 25 years under Tenn. Code Ann. § 67-4-2009(3).

  1. Purchase price of industrial machinery and research and development equipment ....................................(1)
  2. Percentage allowed (generally 1%*) ......................................................................................................................(2) %
  3. Current year credit (multiply Line 1 by Line 2) ......................................................................................................(3)
  4. Credit available from prior year(s) (from Schedule V) ..........................................................................................(4)
  5. Total credit available (add Lines 3 and 4) ..............................................................................................................(5)
  6. Franchise and excise tax liability before any credits (add Schedule A, Line 3 and Schedule B, Line 5)..........(6)
  7. Franchise and excise tax liability before any credits (add Schedule A, Line 3 and Schedule B, Line 5) .........(8)
  8. Credits from Schedule D, Lines 1 through 4 and Schedule D, Line 7 .................................................................(9)
  9. Tax before Industrial Machinery Credit (subtract Line 9 from Line 8) .............................................................(10)
  10. Amount available in current year (enter the smaller value of Lines 5, 7, or 10 here, and on

Part 2: Recapture of Tax Credit

The Industrial Machinery Tax Credit previously established on this form must be partially recaptured if the equipment on which it was based was sold or removed from the state before the end of the equipment's life as established for federal income tax purpose s. The recapture amount is a percentage of useful life remaining at the time of sale or removal multiplied by the credit originally established on this form. Previously established credits have either offset tax or populated the carryover table Schedule V. Complete the Industrial Machinery Credit Recapture Worksheet and then enter the applicable recapture amounts on Lines 12 and 13 below.

  1. Reduction to credit carryover table, Schedule V, from recapture worksheet, Part 2, Line 16 ....................(12)
  2. Recapture of credit from recapture worksheet, Part 2, Line 17 (enter here and on Schedule B, Line 6) ....(13)

*The percentage allowed on Part 1, Line 2 above is 1%, unless the taxpayer has met the requirements of Tenn. Code Ann. § 67-4-2009(3)(I) and has been approved by the Commissioner of Revenue for an enhanced rate based on the investment amount. The statutory minimum investment requirements and applicable rates for the enhanced credit are shown on the following chart: Minimum Required Capital Investment Rate of Credit $100,000,000 3% $250,000,000 5% $500,000,000 7% $1,000,000,000 10%

Schedule U - Schedule of Loss Carryover

Year Period Ended (MM/YY) Original Return or as Amended Used in Prior Year(s) Expired Loss Carryover Available Total Amount (Enter here and on Schedule J, Line 38) ............................................................................

Schedule V - Schedule of Industrial Machinery and Research and Development Equipment Credit Carryover

Year Period Ended (MM/YY) Original Return or as Amended Used in Prior Year(s) Expired or Recaptured Industrial Machinery Credit Carryover Available Total Amount (Enter here and on Schedule T, Line 4)..............................................................................

Source: official text