Georgia

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GeorgiasJob Tax Credit Programs
October 17, 2007
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Not One, but Several JTC Programs

• Annual Rankings
• County Tier Program -- OCGA 48-7-40
• Contiguous 10 Census Tracts OCGA 48-7-40.1(b)
• Designated by Commissioner
• Contiguous 10 Census Tracts -- OCGA
  48-7-40.1(c)(1)
• Military Zone Census Tracts OCGA
  48-7-40.1(c)(2)
• Airport Buyout Census Tracts -- 48-7-40.1(c)(3)
• Airport Buyout Census Tracts after the Or
• Opportunity Zones -- 48-7-40.1(c)(4)

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Business Enterprises Eligible for State Job Tax
Credit

• Provides for a statewide job tax credit for any
  business or headquarters of any such business
  engaged in manufacturing, warehousing and
  distribution, processing, telecommunications,
  tourism, or research and development industries,
  but does not include retail businesses unless

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Eligibility is Expanded for Some Areas

• If other requirements are met, job tax credits
  are available to businesses of any nature,
  including retail businesses
• in bottom 40 Tier 1 counties and
• in census areas located adjacent to a federal
  military base or in an Opportunity Zone which
  suffer from pervasive poverty.

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County Tier Program

• Counties and certain census tracts in the state
  are ranked and placed in economic tiers using the
  following factors
• highest unemployment rate
• lowest per capita income and
• highest percentage of residents whose incomes
  are below the poverty level.

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County Tier Program
Tier County Rankings Minimum New Jobs Creation Credit Applicable Credit Amount per Eligible New Job
1 1 through 71 5 100 of Liability Bottom 40 Counties Against Withholding 3,500
2 72 through 106 10 100 of Liability 2,500
3 107 through 141 15 50 of Liability 1,250
4 142 through 159 25 50 of Liability 750
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Contiguous 10 Census Tracts Ranked - OCGA
48-7-40.1(b)

• In conjunction with annual county tier ranking
  any area comprised of 10 or more contiguous
  census tracts is also ranked according to the
  same criteria
• Those areas which meet are fall below the County
  tier 1 threshold for unemployment, per capita
  income and poverty receive Tier 1 benefits

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Contiguous 10 Census Tracts Designated - OCGA
48-7-40.1(c)(1)

• Any area of 10 or more contiguous census tracts
  which, in the opinion of the commissioner
  undergoes a sudden and severe period of economic
  distress caused by the closing of a business
  enterprise(s)
• Regulatory thresholds at 110-9-1-.02(4)

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Military Zone Census TractsOCGA 48-7-40.1(c)(2)

• Any area comprised of one or more census tracts
  adjacent to a federal military installation where
  pervasive poverty is evidenced by a 15 percent
  poverty rate or greater as reflected in the most
  recent decennial census

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Airport Buyout Census TractsOCGA 48-7-40.1(c)(3)

• Any area comprised of one or more contiguous
  census tracts which, in the opinion of the
  commissioner of community affairs, is or will be
  adversely impacted by the loss of one or more
  jobs, businesses, or residences as a result of an
  airport expansion, including noise buy-outs, or
  the closing of a business enterprise which, in
  the opinion of the commissioner of community
  affairs, results or will result in a sudden and
  severe period of economic distress

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Opportunity Zones

• Any area comprised of two or more contiguous
  census block groups with a poverty 20 percent or
  greater, where the area is also included within a
  state enterprise zone (OCGA 36-88), where a
  redevelopment plan has been adopted (OCGA 36-61),
  and which, in the opinion of the commissioner of
  community affairs, displays pervasive poverty,
  under-development, general distress, and blight.

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Opportunity Zones

• Maximum Credit of 3,500 for ALL businesses
  including retail businesses
• Credit against 100 of Tax Liability and
• Against Withholding Liability
• Ocilla, Georgia (Industrial Area) (soon) City
  of Milledgeville (Downtown Area)

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(No Transcript)
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Contact

• Dawn Sturbaum, DCA
• [phone]
• dsturbau_at_dca.state.ga.us
• Brian Williamson
• [phone]
• bwilliam_at_dca.state.ga.us