Opportunity Zone
The Atlanta Development Authority markets the Opportunity Zones (OZ) program managed by the Georgia Department of Community Affairs. Opportunity Zones offer significant local, state, and federal incentives for the redevelopment of blighted areas. OZs exist to better utilize several existing state statutes to further economic development, entrepreneurship and increases in private sector led investments through locally driven partnerships. Within certain geographic areas all over the state, these opportunities can be realized without the creation of new state programs or the appropriation of new state funds. Because the initiative relies on the innovative use of existing statutes, projects can be realized quickly. By fostering partnerships and adhering to a core principal of supporting “bottom up, locally driven” projects, OZs will allow innovative, multi-faceted policies, programs and projects to emerge quickly. The statutes include:The Georgia Enterprise Zone Employment Act
This expands the criteria for designating a State Enterprise Zone to allow blighted areas designated under the Georgia Urban Redevelopment Law (§ 36-61-2) as one of five eligible criteria (poverty, unemployment, general distress, underdevelopment and blight) for designation. In Zones established through local ordinance, an eligible business that makes a qualified capital investment and employs five (5) or more employees can qualify for local property tax abatements and relief from local business fees and regulations.
- Minimal cost to the state (0.25 mils property tax)
- Bottom-up, locally driven approach
- Synergies for collaboration with numerous local/ regional/state/federal and private investment and financing programs targeted to the same areas (20% poverty or greater).
The Georgia Business Expansion and Support Act
This program allows businesses that expand or locate within census block groups having 20% or greater poverty included in a locally designated Enterprise Zone where a local Redevelopment Plan has also been adopted pursuant to Georgia’s Urban Redevelopment Law to take advantage of the state job tax credits normally only allowed in Tier One counties. The program would only be available to limited areas where local governments have invested significant “skin in the game” by providing local initiatives and incentives for redevelopment.
- A unique state/local partnership that would allow the state to recognize local initiative through the designation of a state “opportunity zone” once the local initiatives are accomplished.
- The proposed change would allow jobs tax credits to work more effectively for all rural, suburban and urban census areas that have “pockets of poverty” not recognized by the existing criteria.
- Limited cost to the state since targeted areas are experiencing little economic development
- Synergies for collaboration with numerous local/ regional/state/federal and private investment and financing programs targeted to the same areas (20% poverty or greater).