Vidalia Designated As Rural Zone
Income Tax Incentives for
The Georgia Department of Community Affairs has designated four cities – Blakely, Sylvania, Vidalia, and Watkinsville – as the state’s newly established Rural Zones, extending the benefits of three state income tax incentives to spur economic development. These cities join a total of 43 municipalities across the state with this designation.
Effective January 1, continued from page
2024, projects within the Rural Zones can leverage three state income tax incentives: the Job Tax Credit, Investment Credit, and Rehabilitation Credit, according to the press release. These incentives are specifically aimed at fostering job creation, encouraging investment in downtown properties, and supporting property renovations.
The Job Tax Credit offers an annual equivalent of $2,000 for each new full-time equivalent job created, valid for up to five years. The Investment Credit equals 25% of the purchase price of a property within the designated Rural Zone, capped at $125,000, according to the press release. The Rehabilitation Credit provides a 30% equivalent of qualified rehabilitation costs for a building in a designated Rural Zone, not exceeding $150,000. These credits can be combined, but the job creation element is fundamental for their availability.
The Georgia Department of Community Affairs and the Georgia Department of Economic Development collaborate on this program, with designations valid for a period of five years. Rural Zone applications and designations are conducted annually, providing an ongoing opportunity for cities to participate in the program. Communities within the newly designated Rural Zones are urged to develop strategic plans and disseminate information about the advantages these incentives offer to businesses and investors.
This initiative aligns with the state's commitment to fostering economic growth in rural areas and promoting sustainable development.
For more detailed information on the Rural Zone program, interested parties are encouraged to visit the Georgia Community Affairs website, https://www.dca.ga.gov/.