Nine cities – Chickamauga, Covington, Dallas, Dawsonville, Douglas, Ellaville, Fort Oglethorpe, Sandersville, and Warrenton – have been designated as Rural Zones. The Rural Zone program is a collaboration between the Georgia Department of Community Affairs (DCA) and the Georgia Department of Economic Development.
The Rural Zone initiative offers tax credits to individuals and businesses that create jobs and make qualifying investments in designated historic downtown areas. Each designation lasts for five years, and eligible activities for earning tax credits in these nine new Rural Zones begin on January 1, 2025. Communities are encouraged to develop strategies and share information about the benefits to local businesses and investors.
This initiative includes the following state income tax incentives: the Jobs Tax Credit, the Investment Credit, and the Rehabilitation Credit. These incentives are utilized for job-creation activities, the purchase of downtown properties, and the renovation of such properties. The credits can be layered, but none are available without first fulfilling the job-creation element by creating two new full-time equivalent jobs.
The Jobs Tax Credit is equivalent to $2,000 per year for each new full-time equivalent (FTE) for up to five years. The Investment Credit is equivalent to 25 percent of the purchase price of a property within the designated Rural Zone, and the tax credits may not to exceed $125,000. The Rehabilitation Credit is equivalent to 30 percent of the qualified rehabilitation costs of a building located within a designated Rural Zone, and the tax credits may not to exceed $150,000.
