Federal Designated Area Tax Credits

Federal Opportunity Zone (FOZ)

Created by the federal government as part of the Tax Cut and Jobs Act of 2017, Marietta contains several areas recognized as Federal Opportunity Zones.  Individuals investing in projects or properties within these area may be able to pay reduced capital gains taxes on returns. Incentives include capital gain tax deferral until December 31, 2026, a step-up in basis with a 10%-15% deferred gain dependent on the amount of years the investment is held, and forgiveness of additional gains. 

For more details, visit the Georgia Department of Community Affairs or contact one of our staff. Additionally, you can find an interactive map here.

Historically Underutilized Business Zones (HUBZones)

Historically Underutilized Business Zones (HUBZones) are programs implemented in the United States to support small businesses in urban and rural communities that typically struggle to attract economic development. The goal of these programs is to stimulate growth and provide employment opportunities in these economically distressed areas. The HUBZone program falls under the oversight of the SBA’s Office of Government Contracting and Business Development. To be eligible for HUBZone certification, a small business must:

  1. Be owned and controlled at least 51% by U.S. citizens, or a Community Development Corporation, an agricultural cooperative, or an Indian tribe.
  2. Its principal office (the location where the majority of its employees perform their work) must be located within a "Historically Underutilized Business Zone," which includes lands on Indian Reservations, Military Base Re-Alignment and Closure (BRAC) areas, qualified census tracts, qualified non-metropolitan counties, and areas designated as "Difficult Development Areas" (DDAs).
  3. At least 35% of the business's employees must reside in a HUBZone.

An interactive map can be found here.

New Markets Tax Credit

The New Markets Tax Credit (NMTC) is a tax incentive created to encourage private investment in low-income communities. The credit was established by the Community Renewal Tax Relief Act of 2000 and provides a tax credit for investments in designated Community Development Entities (CDEs), which then use the funds to invest in businesses and real estate development projects in low-income areas. CDEs apply to the CDFI Fund for an award of New Markets Tax Credit allocation.  

To be eligible for the NMTC, a business or real estate development project must be located in a low-income community, which is defined as a census tract with a poverty rate of at least 20% or median family income that is less than 80% of the area median income. The CDE must also demonstrate that at least 50% of its qualified equity investments will be used in low-income communities. 

An interactive map can be found here.

Additional Credits & Resources

Federal Empowerment Zones: See interactive map here.
Rural Renewal Counties: See interactive map here.
Enterprise Zones: See list of cities in Georgia with Enterprise Zones here.