Incentives & Grants Roane County PILOT
Payment in Lieu of Taxes (PILOT) incentives for qualifying projects in Roane County — evaluated case-by-case, project by project.
- $1M
- Minimum capital investment
- Case-by-case
- Approval is at the Board’s discretion
- 14 days
- Minimum application lead time before a meeting
- Annual
- Compliance reporting required
A deliberate, case-by-case process.
Payment in Lieu of Taxes (PILOT) is a property tax incentive administered through an Industrial Development Board lease agreement, not a cash grant. Roane County and the City of Oak Ridge work with their respective Industrial Development Boards to consider qualifying projects individually.
The policy applies to projects presented to the Oak Ridge Board in either Roane or Anderson County, and to Roane County Board projects within Roane County outside Oak Ridge. The County reserves the right to modify the policy for projects outside Oak Ridge. Approval is discretionary, never automatic.
Read the full PILOT policy (PDF)
What the Boards consider
Qualifying projects
The Board must find that a project serves the public interest and increases local employment. Applicants must commit to at least $1,000,000 in capital expenditures.
- Commercial businesses that materially increase local sales taxes.
- Distribution facilities; office buildings and service facilities.
- Manufacturing, assembly, processing and fabrication facilities; manufacturing equipment.
- Renovation or reuse of existing facilities for new or expanding industry.
Speculative property acquisitions, including land without an immediate need or plan, are ineligible. Speculative building construction may be considered at Board discretion; new speculative offices are excluded unless part of mixed-use development. Projects inconsistent with plans or zoning need local governing-board consent. Exceptions to eligible-project guidelines require prior local-government approval.
Investment, jobs & wages
The policy’s industrial and commercial evaluation matrices guide incentive decisions. Industrial evaluation includes capital investment, new jobs, qualifying at-risk retained jobs, wages and applicable bonus considerations. Counted new and retained jobs must pay above the County Median Wage.
Under the industrial matrix, the Roane County Board authorizes terms of up to 14 years. It may recommend incentives outside the matrix to the Roane County Commission for consideration; this is not a guaranteed term or benefit.
Existing-facility purchase costs normally do not count as new investment unless the facility has never had a tax abatement or has been vacant or abandoned for more than 24 months. Improvements to an existing facility may qualify.
Review evaluation criteria (PDF)From first conversation to signed agreement
Talk with our team
Arrange a pre-application conference with a Board representative. Discuss your project, investment and employment plans, and confirm which Board will consider your application. Submit to only one Board.
Submit your application
File the application and supporting documents at least 14 days before the scheduled meeting. Include financial statements, preferably audited and at least CPA-reviewed, the application fee and a Board-reliant Phase I environmental assessment or equivalent, unless waived. Equipment-only projects are exempt from the Phase I requirement.
Board evaluation
The Board evaluates eligibility and the applicable matrix. If preliminary approval is granted, Board counsel prepares and negotiates a lease agreement for final Board approval. An applicant representative should attend the meeting considering the project.
Agreement & compliance
After final approval, close the transaction and pay closing fees and expenses. The lease specifies the term, abatement percentage, performance standards, reporting dates and recovery provisions. Annual compliance reports are required.
Approval comes with accountability
The Boards review compliance with lease commitments for jobs, wages and capital expenditures annually or as otherwise determined. Reports include investment, employee and salary information, local vendor spending and actual performance against the application’s projections.
Missed commitments can lead to proportional incentive reductions, a shorter term, cancellation or other lease remedies. The policy also requires an annual State Board of Equalization report before October 1, with a copy sent to the Board.
Review reporting requirements (PDF)Plan for the costs of a PILOT
| Estimated capital expenditures | Application fee |
|---|---|
| $1,000,000–$2,500,000 | $2,000 |
| $2,500,001–$5,000,000 | $3,000 |
| $5,000,001–$10,000,000 | $4,000 |
| $10,000,001–$25,000,000 | $8,000 |
| Greater than $25,000,000 | $15,000 |
Closing fees are 5% of expected tax savings, with a $1,500 minimum and $50,000 maximum. Applicants also pay the Board’s transaction expenses, including legal costs.
The Roane County Industrial Development Board may waive all or part of application and closing fees. Lease amendments carry a $1,000 fee; assignments require prior Board consent and separate fees.
This summary does not replace the policy or a project’s lease agreement. Confirm applicable requirements, fees and terms with our team before applying.
View the full fee schedule (PDF)Considering a PILOT request?
Bring us your project scope and we'll help you understand the process, timeline and what the Boards will be looking for.