Subject 110-24-1 OPPORTUNITY ZONE JOB TAX CREDIT PROGRAM REGULATIONS
Rule 110-24-1-.01 Program Description, General Guidance, and Definitions
| (1) | As described within the State's Job Tax Credit Program at O.C.G.A. § 48-7-40.1(c)(4), a provision exists to assist less developed areas which is to be generally referred to herein as the "Opportunity Zone Job Tax Credit Program". |
| (2) | The Opportunity Zone designation criteria require the targeting of areas that display "Pervasive Poverty, Underdevelopment, General Distress, and Blight". The designation criteria are met by the targeting of poverty areas that are in decline, suffering from disinvestment and are in need of redevelopment and revitalization. Specifically, such areas must be in an eligible census block group and contain parcels meeting the designation criteria of O.C.G.A. § 48-7-40.1(c)(4) as well as one of the required local redevelopment initiatives as described in the Georgia Urban Redevelopment Law at O.C.G.A. § 36-61 or the Enterprise Employment Act at O.C.G.A. § 36-88. |
| (3) | For areas that meet the overall criteria of the Opportunity Zone Job Tax Credit Program, the commissioner of community affairs may designate as an "Opportunity Zone" a group of parcels within an area that meets the criteria under 110-24-1-.02 herein. |
| (4) | Within areas designated as an Opportunity Zone under this Chapter, the state will allow enhanced Job Tax Credits which include the following benefits: a $3,500 tax credit per eligible new job created (as defined in O.C.G.A. § 48-7-40.1(e)), the use of the tax credit against 100 percent of Georgia income tax liability and payroll withholding, the use of the credit by any lawful business, and a job creation threshold of two jobs. |
| (5) | Definitions.
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Rule 110-24-1-.02 Threshold Criteria for Boundaries and Designation
| (1) | Boundaries of an Opportunity Zone must be wholly contained within Areas Displaying Pervasive Poverty, Underdevelopment, General Distress and Blight. |
| (2) | Boundaries of an Opportunity Zone shall
generally follow the center line of streets and/or the boundaries of property
tax parcels as described within
110-24-1-.03(5).
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| (3) | Boundaries of an Opportunity Zone must also be wholly contained within either the boundaries of a state enterprise zone designated pursuant to Chapter 88 of Title 36 of the Georgia Code or within the boundaries of a redevelopment area that has been adopted pursuant to Chapter 61 of Title 36 of the Georgia Code or may include all or part of both an enterprise zone and a redevelopment area. |
| (4) | Boundaries of an Opportunity Zone must also be wholly contained within areas that, in the opinion of the commissioner of community affairs and as supported through appropriate documentation as described within 110-24-1-.03 herein, display Pervasive Poverty, Underdevelopment, General Distress, and Blight. Such designation shall not include areas deemed to be environmentally sensitive or unfit for development. |
Rule 110-24-1-.03 Application for Designation
| (1) | Eligible applicants are general-purpose local governments (cities, counties, consolidated governments, or a combination thereof). |
| (2) | Cover Letter
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| (3) | Ordinances, Plans, and
Policies
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| (4) |
Pervasive Poverty, Underdevelopment, General Distress, and Blight Designation
Criteria
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| (5) | Maps -- Digital maps must be submitted
with the Opportunity Zone designation request and meet the specifications
outlined within this regulation.
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| (6) | Other information may be required at the discretion of the commissioner of community affairs. |
Rule 110-24-1-.04 Policies, Procedures, Limitations, Reporting and Adjustment of Boundaries
| (1) | Applications for Opportunity Zones may be submitted at any time. |
| (2) | A local government may have any number of Opportunity Zones unless otherwise limited by law or these regulations. |
| (3) | A business may qualify for the Opportunity Zone credit without qualifying for benefits under a State Enterprise Zone or Urban Redevelopment Plan. |
| (4) | State Enterprise Zones cited for the purpose of application to the commissioner of community affairs for the creation of an Opportunity Zone must be active, bona fide State Enterprise Zones that are currently offering incentives to enterprise zone businesses. |
| (5) | Opportunity Zones will exist for a period of 10 years from the date of designation or for the life of the related State Enterprise Zones and Urban Redevelopment Plans, whichever is shorter. Opportunity Zones may be renewed by the commissioner of community affairs at the end of 10 years. The Opportunity Zones may be revoked should the documentation used to designate the Zone be determined to be fraudulent. |
| (6) | Reporting
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| (7) | Adjustment of Opportunity Zone Boundaries
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Rule 110-24-1-.05 Opportunity Zone Tax Credit
| (1) | For eligible businesses within a currently designated Opportunity Zone, tax credits may be earned in accordance with O.C.G.A. § 48-7-40.1 and the accompanying regulations. Nothing in this regulation shall be construed as authorization for businesses to claim multiple job tax credits for the same jobs. By way of further explanation, no business may add credits for the same jobs by qualifying simultaneously under the various provisions of O.C.G.A. §§ 48-7-40 and 48-7-40.1. Thus businesses may only claim the credit for jobs created under either the county tier program or the Opportunity Zone program, but not both programs. |
| (2) | All applicable laws and regulations of the Job Tax Credit Program (see O.C.G.A. § 48-7-40.1 and Rules Chapter 110-9-1) must be met before a business may earn Opportunity Zone credits. |
| (3) | Before claiming
Opportunity Zone tax credits, a business must apply for a certification that
the business location where jobs are being created is within a currently
designated Opportunity Zone.
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| (4) | These regulations shall be applicable to all taxable years beginning on or after January 1, 2010 unless otherwise required by law. Businesses may earn Opportunity Zone tax credits for tax years beginning on or after January 1st of the year in which an Opportunity Zone designation is approved by the department of community affairs and provided the business has received a valid certification that the business location is within the designated Opportunity Zone. |