The Rural Zone program targets rural downtown areas that have been adversely impactedÂ by local economic conditions by creating Rural Zones and offering economic developmentÂ incentives. It differs from other programs at DCA which provide technical assistance andÂ access to capital because it would establish an incentive program to stimulate investment,Â job creation, and economic development. It also adds in retail opportunities, which areÂ currently excluded from job tax credits. Further, multiple sources can benefit â€“ for instance,Â a single new coffee shop might provide job tax credits for the local business owner, anÂ investment credit to an urban investor and a rehabilitation credit to a local contractor.
The Job Tax Credit (JTC) will be $2,000 per new full-time equivalent job per year, up to 5Â years and not to exceed $200,000 total or $40,000 per year. New full-time equivalent jobÂ means an aggregate of employee worked hours totaling 40 hours per week between two orÂ more employees. At least two net, new full-time equivalent jobs must be created to qualify.Â This credit is for the small business owner who opens a storefront and creates jobs.
The Investment Credit is equivalent to 25% of the purchase price, not to exceed $125,000Â total or $25,000 per year. At least two net, new full-time equivalent jobs must be createdÂ and maintained to qualify for the investment credit. This credit is for people who purchase aÂ building downtown and cannot be taken unless jobs are created and JTC is taken.
The Rehabilitation Credit is equivalent to 30% of the qualified rehabilitation, not to exceedÂ $150,000 total or $50,000 per year. At least two net, new full-time equivalent jobs must beÂ created and maintained to qualify for the rehabilitation credit. This credit is to offsetÂ development costs associated with the rehabilitation of a certified investor property.
Similar to other incentive programs (i.e., Opportunity Zones and Tourism Development Act)Â this program will be the joint responsibility of the Georgia Department of Community AffairsÂ and the Georgia Department of Economic Development. Both Commissioners will jointlyÂ review Revitalization Zone requests, and DCA will administer the program for approved areas.
- Cities and counties with a population of less than 15,000
- Must have a concentration of historic commercial structures at least 50 years oldÂ within the zone
- Must prove economic distress based on poverty rate, vacancy of the downtownÂ area, or blight.
- Must be in compliance with the state requirements regarding comprehensiveÂ planning and reporting, Service Delivery Strategy, Government ManagementÂ Indicators (GOMI), and the Report of Local Government Finances.
- Must submit a feasibility study or market analysis identifying business activities thatÂ can be supported in the zone
- Must submit a master plan or strategic plan designed to assist private and publicÂ investment