1. Georgia Department of Community Affairs Opportunity Zones

2. 2004 Legislative Session – HB984 n General Strategy 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

3. HB984 – Applicable Statutes 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

4. Focused Geographic Areas – 20% Poverty HB984 – “Opportunity Zones” Max State Job Tax Credits Local Redevelopment Powers Local Enterprise Zone Benefits SBA, FHLB, HUD, USDA, EDA, etc, Banks CRA Programs Non-Profits, Foundations, Etc. Federal CDBG targeted to same areas Federal New Market Tax Credits

5. Promising Uses for Opportunity Zones n Rural areas with sluggish economies and blighted industrial, commercial and residential areas n Brownfields n Declining commercial corridors n Deteriorating in-town neighborhoods (state EZ allows tax abatement on rehabilitated housing) n Pockets of urban poverty in otherwise affluent counties n Traditional industrial development

6. HB984 -- Amendments to Enterprise Zone Employment Act (O.C.G.A. 36-88) n Added blighted areas designated under the Urban Redevelopment Law as one of five eligible criteria for designation of a State Enterprise Zone Poverty Unemployment general distress under-development blight

7. HB984 -- Amendments to Enterprise Zone Employment Act (O.C.G.A. 36-88) n Modify poverty criterion to conform with standard federal definition (20% poverty within census tracts/block groups) n Allow local governments greater flexibility in setting local property tax abatements (rates may now be negotiated up to the maximum prescribed in statute)

8. HB984 – Amendments to Georgia Business Expansion & Support Act (48-7-40.1) n Opportunity Zones are enabled pursuant to “under- developed area” portion of BEST [O.C.G.A 48-7- 40.1(c)(4)] n 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

9. HB984 – Amendments to Georgia Business Expansion & Support Act (48-7-40.1) n State designation of an Opportunity Zone would allow 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

10. HB984 -- Opportunity Zones

11. Enterprise Zone

12. HB984 -- Opportunity Zones Redevelopment Area Enterprise Zone

13. HB984 -- Opportunity Zones Eligible OZ

14. HB984 -- Opportunity Zones Uptown Warehouse District Historic Mill Houses (Low Income) Brownfield Site Downtown Proposed Residential Infill 20% Poverty

15. HB984 -- Opportunity Zones Uptown Warehouse District Historic Mill Houses (Low Income) Brownfield Site Downtown Proposed Residential Infill 20% Poverty State EZ

16. HB984 -- Opportunity Zones Uptown Warehouse District Historic Mill Houses (Low Income) Brownfield Site Downtown Proposed Residential Infill 20% Poverty State EZ Redevelopment Area

17. Opportunity Zones -- Partners n Partnerships with other public and private entities targeting same areas: Federal n HUD’s CDBG, HOME, HOPE and others n Treasury’s New Market Tax Credits and CDFI programs n SBA, USDA, FHLB, HHS and others Private n Bank CRA Programs, Non-Profits, Philanthropic organizations

18. HB984 – Example of Benefits n 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

19. HB984 – Example of Benefits n 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

20. Application, regulation, maps and more available at: n http://www.dca.state.ga.us/economic http://www.dca.state.ga.us/economic or contact Stefanie Dye at: 404.679.1738or sdye@dca.state.ga.us

21. Questions: Brian Williamson – 404.679.1587 bwilliam@dca.state.ga.us