$21M FedEx Memphis tax break heads to governor’s desk
NASHVILLE, Tenn. — A bill to award FedEx $21.3 million in tax breaks over seven years for its $1.3 billion Memphis hub expansion is heading to Gov. Bill Lee’s desk.
Senators voted unopposed Tuesday for the incentives without questions or mention of FedEx. The House praised FedEx’s project before passing the bill last week.
It includes $16.1 million in state and $5.2 million in local sales and use tax exemptions for building materials for the FedEx project.
Company spokeswoman Maury Donahue says FedEx would still pay more than $30 million in sales tax with incentives for the project, which is expected to inject $400 million-plus into Memphis’ construction labor market.
Donahue says FedEx paid $110 million-plus in 2018 Tennessee taxes and employs upward of 39,000 people statewide, including more than 11,000 in Memphis.