NASHVILLE — State officials today selected six venture capital firms, including one with Chattanooga ties, to split $120 million in tax credits intended to spark investment in new Tennessee companies.

Officials said they also plan to ask the Tennessee General Assembly next year for an additional $40 million in tax credits to expand the fledgling program, dubbed TNInvestco. The extra $40 million would provide two alternate companies with $20 million each in credits.

The six companies announced Thursday will each get $20 million in gross premiums tax credits, which they will market to insurance companies to create a pool of venture capital funds. The money would be invested in early and mid-stage companies in Tennessee.

The state’s goals are to develop Tennessee’s “entrepreneurial infrastructure,” bring additional venture capital to the state, diversify the state’s economy and create “clusters” of business innovation which can generate additional new companies or attract new talent to the state, according to a news release.

Among the venture capital firms is Nashville-based XMi High Growth Development Fund, which has operations in Nashville through XMi Holdings and in Chattanooga through The Lupton Co., according to state documents.

Tennessee Revenue Commissioner Reagan Farr, who along with Economic and Community Development Commissioner Matt Kisber announced the selections, said XMi “brings a strong team of experienced managers to the table as well as people with strong operational experience and experience as businessmen.”

Citing its ties to Tennessee certified public accountants, XMi’s head, Michael Schmerling said “we’re going to be looking all over the state for opportunities. So industries that have strong opportunities for jobs and headquarters, not just jobs but headquarters.”