Georgia Department of Community Affairs

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Georgia Department of Community Affairs
Job Tax Creditsin anOpportunity Zone
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Benefits for Business
Opportunity Zone

• Job Tax Credits

Credits Offset
Georgia Income Taxes
Georgia Withholding Taxes
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Georgia Job Tax Credit Program
Opportunity Zone Legislation
Began in 1990s
Only Areas with Highest Needs
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Opportunity Zone Criteria

• An area within or adjacent to a census block
  group with a poverty rate of 15 percent or
  greater
• Within a State Enterprise Zone or Urban
  Redevelopment Plan area
• Area must display pervasive poverty,
  underdevelopment, general distress and blight.

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Benefits to the Community
Opportunity Zone Designation
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Currently Designated Areas
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(No Transcript)
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Opportunity Zone Job Tax Credit

• Any lawful business, including retail (retail is
  generally excluded from the Job Tax Credit)
• Jobs Creation Threshold 2 net new jobs to
  Georgia (may not be husband and wife)
• Credit 3,500 per net new job which may be
  claimed for five years as long as the job is
  maintained

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Calculation of the Tax Credit

• Business creates 2 net new jobs
• Business maintains the jobs for 5 years

• Total possible credit 35,000 for 2 jobs

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Timing Of The Tax Credit

• Job threshold met prior to 2009
• Create the job threshold in Year 1
• Maintain jobs in years 2-6
• Claim credit on the tax returns for years 2-6

• Job threshold met in tax year beginning on or
  after January 1, 2009
• Create the job threshold in Year 1
• Claim the credit on the year 1 tax return
• Maintain Year 1 jobs for the next four years
• Claim credit on years 2-5 tax returns as well

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Example of OZ Credit BenefitJob Threshold met
prior to 2009

• Jobs Created Credit Tax Liability
  Withholding
• Year 1 2 0
• Year 2 3 7,000 1,200 5,800
• Year 3 3 10,500 1,000 9,500
• Year 4 4 10,500 1,500 9,000
• Year 5 4 14,000 1,700 12,300
• Year 6 5 14,000 2,100 11,900
• Year 7 5 10,500 2,050 8,450
• Year 8 6 7,000 1,800 5,200
• Year 9 6 7,000 1,750 5,250
• Year 10 6 3,500 1,450 2,050
• Year 11 7 3,500 1,600 1,900
• Year 12 7 0 0
• TOTALS 87,500 16,150 71,350
• In the above example, a Job Tax Credit of
  87,500 is generated, with each net new job
  eligible to claim the credit for five years and
  the business able to utilize all of the credit

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Example of OZ Credit BenefitJob Threshold met in
2009 or later

• Jobs Created Credit Tax
  Liability Withholding
• Year 1 2 7,000 1,200 5,800
• Year 2 3 10,500 1,000 9,500
• Year 3 3 10,500 1,500 9,000
• Year 4 4 14,000 1,700 12,300
• Year 5 4 14,000 2,100 11,900
• Year 6 5 7,000 2,050 4,950
• Year 7 5 3,500 1,800 1,700
• Year 8 6 3,500 1,750 1,750
• Year 9 6 0 0 0
• TOTALS 70,000 13,100 56,900
• In the above example, a Job Tax Credit of
  70,000 is generated, with each net new job
  eligible to claim the credit for five years and
  the business able to utilize all of the credit

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Steps to Claim the Tax Credit

• Meet the Eligibility Criteria
• Complete and file the Opportunity Zone
  Certification Form with DCA
• File Form IT-WH with the Department of Revenue
  (DOR)
• File original Georgia Income Tax Return, along
  with Form IT-CA, with DOR by the due date

Withholding credit may be claimed only after DOR
validates the credit
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Opportunity Zone Certification Form
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Forms, Maps and More
For Questions on Job Tax Credits

• please contact
• Dawn Sturbaum [phone] dawn.sturbaum_at_dca.ga.
  gov

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Georgia Department of Community Affairs
Job Tax Creditsin anOpportunity Zone
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