State of Georgia Department of Community Affairs
Rural Zone Designation
Designation: January 1, 2020 through December 31, 2024
The Rural Zone program targets rural downtown areas that have been adversely impacted by local economic conditions by creating Rural Zones and offering economic development incentives. It's goal is to establish an incentive program to stimulate investment, job creation, and economic development. Multiple sources can benefit – for instance, a single new coffee shop might provide job tax credits for the local business owner and an investment and rehabilitation credit to an urban investor.
The Job Tax Credit will be $2,000 per new full-time equivalent job per year, up to 5 years and not to exceed $200,000 total or $40,000 per year. New full-time equivalent job means an aggregate of employee worked hours totaling 40 hours per week between two or more employees. At least two net, new full-time equivalent jobs must be created to qualify. This credit is for the small business owner who opens a storefront and creates jobs.
The Investment Credit is for people who purchase a building downtown; it can't be taken unless jobs are created. It's equivalent to 25% of the purchase price, not to exceed $125,000 total or $25,000 per year. At least two net, new full-time equivalent jobs must be created and maintained to qualify for the investment credit.
The Rehabilitation Credit is to offset development costs associated with the rehabilitation of a certified investor property; it's equivalent to 30% of the qualified rehabilitation, not to exceed $150,000 total or $50,000 per year. At least two net, new full-time equivalent jobs must be created and maintained to qualify for the rehabilitation credit.
This is an amazing opportunity, and we're incredibly excited about the potential it has for our downtown. For additional information please email firstname.lastname@example.org, or stop by City Hall to speak with the City Administrator. You can also review information about the program on your own: Eatonton presentation, brief fact sheet, rehab standards, and Rural Zone rules.
Click here to view a brief webinar about the Rural Zone Tax Credits from DCA.