Small Towns with Big Opportunities
Brandy Swanson
Sr. Business Advisor @ Smith + Howard | Registered Neutral, Business Development
Our recent real estate and construction survey focused primarily on Metro Atlanta, but Georgia’s small towns are getting some attention, too. This year the State Legislature approved House Bill 73, a tax credit created to help revive fading rural towns. Known as the RURAL (Revitalizing Underdeveloped Rural Areas Legislation) bill, the intent behind the incentive is to build new opportunities for rural economic development.
What is considered a rural area or revitalization zone?
The population in a qualified town must not exceed 15,000. According to the Georgia Department of Economic Affairs, there are 473 towns in Georgia with a population of 15,000 or less. In addition, there must be a concentration of commercial buildings that are at least 50 years old and the local government must provide evidence of economic distress. Economic distress is based on poverty rate, downtown vacancies or blight, among other criteria.
The approved bill offers incentives for job creation, commercial investment and business activity in rural downtown areas through a series of tax credits: a job tax credit, an investment tax credit and a rehabilitation tax credit. Those investing in a qualified area must do one of three things:
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