The next-generation global climate model from the NASA Goddard Institute for Space Studies, GISS-E3, contains many improvements to resolution and physics that allow for improved representation of tropical cyclones (TCs) in the model. This study examines the properties of TCs in two different versions of E3 at different points in its development cycle, run for 20 years at 0.5 degree resolution, and compares these TCs with observations, the previous generation GISS model, E2, and other climate models. E3 shares many TC biases common to global climate models, such as having too few tropical cyclones, but is much improved from E2. E3 produces strong enough TCs that observation-based wind speed thresholds can now be used to detect and track them, and some storms now reach hurricane intensity; neither of these was true of E2. Model development between the first and second versions of E3 further increased the number and intensity of TCs and reduced TC count biases globally and in most regions. One-year sensitivity tests to changes in various microphysical and dynamical tuning parameters are also examined. Increasing the entrainment rate for the more strongly entraining plume in the convection scheme increases the number of TCs (though also affecting other climate variables, and in some cases increasing biases). Variations in divergence damping did not have a strong effect on simulated TC properties, contrary to expectations based on previous studies. Overall, the improvements in E3 make it more credible for studies of TC activity and its relationship to climate.