Georgia’s Rural Zone Program

A new program in Georgia offers tax incentives to businesses looking to invest in rural downtown areas throughout the Peach State. Effective January 1, 2018, the state has designated the following communities for economic development under the Rural Zone program:

  • Bainbridge
  • Commerce
  • Cornelia
  • Fitzgerald
  • Jonesboro
  • Nashville
  • Perry
  • Springfield
  • Toccoa

Portions of each community are now zoned to allow for tax credits related to job creation and economic activity in these communities. Such tax incentives include the following:

  • Job Tax Credit: Businesses can receive a credit of $2,000 for each new full-time equivalent job per year for up to five (5) years. A minimum of two new qualifying jobs must be created, and the maximum credit cannot exceed $200,000 total (or $40,000/year).
  • Investment Credit: Businesses can receive a credit of 25% of the purchase price. The credit is taken over a five-year period and cannot exceed $125,000 total (or $25,000/year). A minimum of two new jobs must also be created to qualify for this credit.
  • Rehabilitation Credit: Businesses can receive a credit of 30% of the qualified rehabilitation costs. The maximum credit available is $150,000 total per taxpayer and the credit is taken over a period of three years (or $30,000/year).

If your business is considering expansion in Georgia and would like to take advantage of these tax credits, the Firm’s State and Local Tax (“SALT”) practice is ready to help.

Contact a member of Cherry Bekaert’s SALT team to get started.