Georgia Department of Community Affairs

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Georgia Department of Community Affairs
Job Tax Creditsin anOpportunity Zone
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Benefits for Business
Opportunity Zone

• Job Tax Credits

Credits Offset
Georgia Income Taxes
Georgia Withholding Taxes
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Opportunity Zone Legislation
Initially created
Amended
2004
2008
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Benefits to the Community
REDEVELOPMENT
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Benefits to the Community
JOB CREATION
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Opportunity Zone Criteria

• An area within or adjacent to a census block
  group with a poverty rate of 15 percent or
  greater
• Within a State Enterprise Zone or Urban
  Redevelopment Plan area
• Area must display pervasive poverty,
  underdevelopment, general distress and blight.

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Currently Designated Areas
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(No Transcript)
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Opportunity Zone Job Tax Credit

• Business entity any lawful business, including
  retail (retail is generally excluded from the Job
  Tax Credit)
• Jobs Creation Threshold 2 net new jobs to
  Georgia (may not be husband and wife)
• Credit 3,500 per net new job which may be
  claimed for five years as long as the job is
  maintained

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Calculation of the Tax Credit

• Business creates 2 net new jobs
• Business maintains the jobs for 5 years
• Total possible credit 35,000 for 2 jobs
• 3,500 Tax credit per job
• x 2 jobs
• x 5 years
• 35,000 Total Credit

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Example of OZ Credit BenefitJob Threshold met in
2009 or later

• Jobs Created Credit Tax
  Liability Withholding
• Year 1 2 7,000 1,200 5,800
• Year 2 3 10,500 1,000 9,500
• Year 3 3 10,500 1,500 9,000
• Year 4 4 14,000 1,700 12,300
• Year 5 4 14,000 2,100 11,900
• Year 6 5 7,000 2,050 4,950
• Year 7 5 3,500 1,800 1,700
• Year 8 6 3,500 1,750 1,750
• Year 9 6 0 0 0
• TOTALS 70,000 13,100 56,900
• In the above example, a Job Tax Credit of
  70,000 is generated, with each net new job
  eligible to claim the credit for five years and
  the business able to utilize all of the credit

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Steps to Claim the Tax Credit

• Meet the Eligibility Criteria
• Complete and file the Opportunity Zone
  Certification Form with DCA
• File Form IT-WH with the Department of Revenue
  (DOR)
• File original Georgia Income Tax Return, along
  with Form IT-CA, with DOR by the due date

Withholding credit may be claimed only after DOR
validates the credit
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Opportunity Zone Certification From
Section I
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Opportunity Zone Certification From
Section II
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Opportunity Zone Certification From
Section III
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Opportunity Zone Job Tax Credits to Withholding
Business may claim the job tax credit on jobs
from Year 1 on the Year 2 tax return for jobs
created prior to 2009, or Year 1 jobs created in
2009 or later may claim jobs on the tax return
for the year the jobs are created
Business located within an Opportunity Zone area
eligible for the withholding benefit Business
meets JTC eligibility
Credits which may not be clamed against
withholding (i.e. prior year carry forward,
existing industry bonus) will carry forward to be
used against future income tax liability

Business creates the required number of net new
jobs (minimum of 2) in Year 1, has the
Opportunity Zone Certification Form completed and
forwards it to DCA for acceptance
The Department of Revenue has 90 days from the
date the tax return is filed to review the credit
and make a determination of the amount eligible
to claim against withholding
DOR sends a letter to the business notifying of
the amount of credit available to claim against
WH and when to claim
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Forms, Maps and More
\ available at
http//www.dca.ga.gov/economic/DevelopmentTools/pr
ograms/opportunityZones.asp
For Questions on Job Tax Credits

• please contact
• Dawn Sturbaum [phone] dawn.sturbaum_at_dca.ga.
  gov