Transcript Opp Zone - Georgia Department of Community Affairs

Georgia Department of Community Affairs
Opportunity Zones
2004 Legislative Session – HB984
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General Strategy
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Utilize State’s existing redevelopment statutes in an
innovative fashion
Reward local governments that undertake
redevelopment and revitalization with access to
maximum State Job Tax Credits’s
Operate state-wide, wherever “pockets of poverty” exist
in rural, urban or suburban communities
Support bottom up, locally driven community and
economic development initiatives through local
collaborative partnerships
HB984 – Applicable Statutes
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Enterprise Zone Employment Act –
O.C.G.A. 36-88
Georgia Urban Redevelopment Law –
O.C.G.A. 36-61
Georgia Business Expansion & Support
Act – O.C.G.A 48-7-40.1
HB984 – “Opportunity Zones”
Local Enterprise
Zone Benefits
Banks CRA
Programs
Max State
Job
Tax Credits
Local
Redevelopment
Powers
Focused Geographic
Areas – 20% Poverty
Federal CDBG
targeted to
same areas
SBA, FHLB,
HUD, USDA,
EDA, etc,
Non-Profits,
Foundations,
Etc.
Federal
New Market Tax
Credits
Promising Uses for Opportunity Zones
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Rural areas with sluggish economies and blighted
industrial, commercial and residential areas
Brownfields
Declining commercial corridors
Deteriorating in-town neighborhoods (state EZ
allows tax abatement on rehabilitated housing)
Pockets of urban poverty in otherwise affluent
counties
Traditional industrial development
HB984 -- Amendments to Enterprise Zone
Employment Act (O.C.G.A. 36-88)
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Added blighted areas designated under the Urban
Redevelopment Law as one of five eligible criteria
for designation of a State Enterprise Zone
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Poverty
Unemployment
general distress
under-development
blight
HB984 -- Amendments to Enterprise Zone
Employment Act (O.C.G.A. 36-88)
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Modify poverty criterion to conform with
standard federal definition (20% poverty
within census tracts/block groups)
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Allow local governments greater flexibility
in setting local property tax abatements
(rates may now be negotiated up to the
maximum prescribed in statute)
HB984 – Amendments to Georgia Business
Expansion & Support Act (48-7-40.1)
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Opportunity Zones are enabled pursuant to “underdeveloped area” portion of BEST [O.C.G.A 48-740.1(c)(4)]
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Allows DCA to designate as an “Opportunity
Zone”, areas bounded by two or more census block
groups with a 20% or greater poverty rate where an
Enterprise Zone and Urban Redevelopment Area
have also been designated by a local government
HB984 – Amendments to Georgia Business
Expansion & Support Act (48-7-40.1)
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State designation of an Opportunity Zone would
allow
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ANY businesses (including retail) within the area to
qualify
Lower threshold to 5 jobs to qualify for the state’s
maximum job tax credit of $3,500 per job
Allow credit against 100% of income tax liability with
balance against payroll withholding payments where
insufficient income tax liability exist
HB984 -- Opportunity Zones
2 or more Census Blocks > 20% Poverty
HB984 -- Opportunity Zones
2 or more Census Blocks > 20% Poverty
Enterprise Zone
HB984 -- Opportunity Zones
2 or more Census Blocks > 20% Poverty
Enterprise Zone
Redevelopment Area
HB984 -- Opportunity Zones
2 or more Census Blocks > 20% Poverty
Eligible OZ
State Enterprise Zone
Redevelopment Area
HB984 -- Opportunity Zones
20% Poverty
Brownfield
Site
Uptown
Warehouse District
Historic Mill
Houses
(Low Income)
Proposed
Residential Infill
Downtown
HB984 -- Opportunity Zones
20% Poverty
State EZ
Brownfield
Site
Uptown
Warehouse District
Historic Mill
Houses
(Low Income)
Proposed
Residential Infill
Downtown
HB984 -- Opportunity Zones
20% Poverty
State EZ
Redevelopment Area
Brownfield
Site
Uptown
Warehouse District
Historic Mill
Houses
(Low Income)
Proposed
Residential Infill
Downtown
Opportunity Zones -- Partners
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Partnerships with other public and private entities
targeting same areas:
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Federal
 HUD’s CDBG, HOME, HOPE and others
 Treasury’s New Market Tax Credits and CDFI
programs
 SBA, USDA, FHLB, HHS and others
Private
 Bank CRA Programs, Non-Profits, Philanthropic
organizations
HB984 – Example of Benefits
 Standard Tier Two JTC:
• Businesses must create over 10 jobs to qualify
for the a job tax credit of $2,500 per job
• May take the JTC only up to 50% of their
income tax liability only
• Credit limited to manufacturing, warehousing
and other similar businesses
• Manufacturing – 25 jobs retained over 10 Yrs
• NPV of Benefit is $106,830
HB984 – Example of Benefits
 Enhanced Opportunity Zone JTC
• ANY businesses within the area may qualify
• Lower threshold to 5 jobs to qualify for the
state’s maximum job tax credit of $3,500 per
job
• Allow credit against 100% of tax liability with
balance against payroll withholding payments
where no income tax liability exist
• 25 jobs retained over 10 Yrs
• NPV of Benefit is $324,960
Application, regulation, maps and more available at:
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http://www.dca.state.ga.us/economic
or contact Stefanie Dye at:
404.679.1738 or
[email protected]
Questions:
Brian Williamson –
404.679.1587
[email protected]