Time-critical 2014 Job Tax Credit ranking details have been released by the Georgia Department of Community Affairs (click here). Also, please note:
- Census Tracts have changed: due to the transition from the 2000 Census boundaries to the 2010 Census boundaries, your clients’ locations may be impacted. This applies to Less Developed Census Tract, Opportunity Zone, and Military Zone tax credits.
- A Notice Of Intent may need to be filed to maintain your client’s tier, zone, or Less Developed Census Tract designation — the form must be filed by Feb. 15, 2014 (click here).
So please remember to review your clients’ plans for 2014. Job Tax Credits may be available if they plan to increase employment levels, open new or change locations in Georgia, or buy another company.
We recently attended The Georgia Financing Roundtable conference sponsored by the Council of Development Finance Agencies (CDFA, click here). This session highlighted federal, state, local, and private alternative financing tools available to economic development groups to assist companies with job growth. These alternatives include bonds, grants, tax credits, EB-5 financing and equity funding sources. There are a lot of alternatives available, especially for economically distressed and rural areas. Here is an overview:
- Invest Atlanta – Major push for downtown Atlanta for assisting start-ups, strengthening exports, and increasing foreign direct investments.
- Georgia – The Department of Community Affairs (DCA) provides grants and Industrial Development Bonds as well as providing guidelines for Job and Opportunity Zone tax credits (click here for DCA overview). Also, the 2014 legislature will consider the proposed Downtown Renaissance Tax Credits to redevelop downtown areas (HB 128 click here)
- Federal – Due to the budget, sequester, and other issues, federal incentives may be reduced over time. However, several programs are still available including new market tax credits, EB-5 program, and USDA rural development programs.
- Summary – Alternative financing tools are utilized less than 5% of the time in local economic development efforts. But creative financing could be utilized a lot more to obtain funds for economic development. For example, a new economic development project may be financed with “Capital Stacking.” This approach may combine tax exempt bonds, EB-5 equity, and tax credits to finance a new project.
So reach out to your economic development organizations to find alternative funding for your clients. You can help to spur local job growth, benefiting your clients and your community!
The Georgia Legislature is about to wrap up this year’s session, and there have been few changes that relate to business incentives or tax credits. But an interesting one is for the Opportunity Zones. SB 137makes changes that allow Opportunity Zones to be designated by the commissioners of the departments of Economic Development and Community Affairs — IF they agree! (click here for details)
Time-critical 2013 Job Tax Credit ranking details have been released by the Department of Community Affairs (click here). Also, please note:
- Census Tracts have changed: due to the transition from the 2000 Census boundaries to the 2010 Census boundaries, your clients’ locations may be impacted. This applies to regular JTC, Less Developed Census Tract, Opportunity Zone, and Military Zone tax credits.
- Notice Of Intents need to be filed: to maintain your clients’ tier, zone, or Less Developed Census Tract designations, the form must be filed by Feb. 15, 2013 (click here)!!!!
If you haven’t done so, please review your clients’ plans for 2013. Job Tax Credits may be available if they plan to increase employment levels, open new or change locations in Georgia, or buy another company.
The Georgia Department of Community Affairs (DCA) has just released the 2012 Tier Rankings (click here) used for Job and Investment Credits.
The number of tax credit Opportunity Zones has been increased by DCA (click here). It was announced recently that the City of Atlanta has been approved for some new zones.
This tax credit can get complex, since the local Opportunity Zone contact person, DCA, and DOR have to be in the loop for approval. If the tax credit is going to be utilized against payroll withholding taxes, another level of complexity is added. These tax credit $$ can really add up – but proceed with caution!
The 2011 Job Tax Credit tier rankings have been published by the Department of Community Affairs / DCA (click here ).
If your client’s tier ranking or less developed census tract listing changed for the worse, make sure you submit the Notice Of Intent no later than February 15, 2011 (click here).
Going forward, remember to advise your clients who are adding jobs to be aware of the threshold levels so they add at least the minimum number of jobs to qualify for the credit.