Zoned Tax Incentives

Enterprise Zones

Commercial Development: Recognizing the need for revitalization in many areas of Georgia, the General Assembly enacted the Enterprise Zone Employment Act in 1997. The State Enterprise Zone program intends to improve geographic areas within cities and counties that are suffering from disinvestment, underdevelopment, and economic decline by encouraging private businesses to reinvest and rehabilitate such areas.  A business development in the Enterprise Zone is eligible for tax incentives if the “qualifying business” meet the criteria established herein (O.C.G.A. 36-88-9). Criteria established for the program stipulates that the qualifying business provides “economic stimulus” with sufficient quantity and quality by:

 

1. The creation of two (2) fulltime jobs and;

2. When possible, 20% of new employees shall be low- to moderate-income individuals.

 

Residential Development: All residential development in the Enterprise Zone is eligible for tax incentives if the “qualifying development or construction project” meets the criteria established herein (O.C.G.A. 36-88-9). Criteria established for the enterprise includes that the qualifying development or construction project provides “affordable housing” by:

 

1. If new residential construction or rehabilitation is sold to a qualified low- to moderate income individual or family, the exemptions apply to ANY entity within the zone;

2. If new residential construction or rehabilitation replaces a block consisting of more than five (5) adjoining/adjacent homes, the exemptions apply to ANY entity within the zone;

3. If new residential construction or rehabilitation of an existing property or structure where value of improvements equal greater than 500% of the existing land value, the exemptions apply to ANY entity within the zone.

 

The Government shall exempt qualifying business as outlined in the Act from municipal ad valorem property taxes, excluding property taxes imposed by the school districts or Spalding County that would otherwise be levied on the qualifying business and service enterprise in accordance with the following schedule (O.C.G.A. 36-88-8):

 

  1. One hundred percent abatement of post assessed rehabilitation property taxes shall be exempt for the first five years
  2. Eighty percent of post assessed rehabilitation property taxes will be exempt for year six.
  3. Sixty percent of post assessed rehabilitation property taxes will be exempt for year seven.
  4. Forty percent of post assessed rehabilitation property taxes will be exempt for year eight
  5. Twenty percent of post assessed rehabilitation property taxes will be exempt for year nine
  6. Zero percent exemption will begin at year ten.

 

For more information, click here or contact the DDA at 770.233.2901.

Click here to see Enterprise Zones.

New Market Tax Credits (NMTC)

The New Markets Tax Credit Program (NMTC Program) was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years (five percent for each of the first three years, and six percent for each of the remaining four years). The investment in the CDE cannot be redeemed before the end of the seven-year period. 

For more information, click here or contact the DDA at 770.233.2901.

Click here to see eligible census tracts.

Opportunity Zones

An Opportunity Zone is a Job Tax Credit Program open to any business located within the define areas of the City of Griffin. For each full-time job (minimum two jobs), a tax credit of $3,500 maybe be applied to your corporate income tax liability and payroll withholdings.

For more information, click here or contact the DDA at 770.233.2901.

Click here to see Opportunity Zones.