Current through Rules and Regulations filed
through March 20, 2024
(1)
Timetable and Effective Dates for
Designation of Tier Status of Georgia Counties/Designation of Less Developed
Census Tract Areas. Using the most current data available from the
Department of Labor and the United States Department of Commerce, the
commissioner of community affairs shall rank and designate all 159 counties in
Georgia. And using the most current data available from the Department of Labor
and the United States Department of Commerce, the commissioner of community
affairs shall rank and designate certain less developed census tract areas.
(a) For the purpose of determining the number
of new jobs created, business enterprises shall use their first tax year that
begins on or after January 1 of the calendar year in which a census tract is
designated as less developed or in which a county is designated as a tier 1,
tier 2, tier 3, or tier 4 county, unless otherwise approved by the commissioner
of community affairs.
(2)
Ranking and Designation of Tier
Status of Georgia Counties. A combination of the following factors will
be used in ranking counties: highest unemployment rate for the most recent
36-month period; lowest per capita income for the most recent 36-month period;
and highest percentage of residents whose incomes are below the poverty level
according to the most recent data available.
(a) Counties ranked and designated as the
first through seventy-first least developed counties shall be classified as
tier 1, counties ranked and designated as the seventy-second through one
hundred sixth least developed counties shall be classified as tier 2, counties
ranked and designated as the one hundred seventh through one hundred
forty-first least developed counties shall be classified as tier 3, and
counties ranked and designated as the one hundred forty-second through one
hundred fifty-ninth least developed counties shall be classified as tier
4.
(b) The factors used in ranking
counties will all be given equal weight.
(c) In the case of a tie that would place
tied counties in two different categories (tier 1, tier 2, tier 3, or tier 4),
the tie will be broken in the following manner: the county with the highest
average unemployment rate will be in the lower category (e.g., tier 1 if the
split is between tier 1 and tier 2). If the counties are tied on highest
average unemployment rate, the county with the lowest average per capita income
will be in the lower category. If the counties are tied on both highest average
unemployment rate and lowest average per capita income, the county with highest
percentage of poverty will be in the lower category. If the counties are tied
on all three categories, the commissioner of community affairs shall determine
which county falls into each category.
(3)
Ranking and Designation of Ten or
More Contiguous Census Tracts as Less Developed Areas. Using data from
the Department of Labor and the United States Department of Commerce, a
combination of the following factors will be used in ranking counties in order
to help determine the less developed census tract areas: highest unemployment;
lowest per capita income; and highest percentage of residents whose income is
below the poverty level. The county that ranks seventy-first from the bottom on
these factors will be the benchmark county used to determine which census
tracts are potentially eligible for inclusion in a less developed census tract
area.
(a) All census tracts in the state and
the benchmark county will be ranked using the following factors: highest
unemployment; lowest per capita income; and highest percentage of residents
whose income is below the poverty level. Data used to rank the tracts and the
benchmark county will be from the Department of Labor and the United States
Department of Commerce. All census tracts that are equal or lower in rank than
the benchmark county will be eligible for inclusion in a less developed census
tract area if they can be grouped as part of 10 or more contiguous census
tracts that are also eligible for inclusion in a less developed census tract
area.
(b) Groupings of 10 or more
eligible census tracts will be determined according to the following rules:
1) all eligible census tracts will be grouped
into less developed census tract areas that are as large as possible but never
in groupings of less than 10;
2)
groupings may cross county boundaries; and
3) all census tracts in a grouping must be
contiguous.
(c) All
factors used in ranking census tracts and counties for the purpose of
determining less developed census tract areas will be given equal
weight.
(4)
Redesignation of Tier Status of Georgia Counties/Designation of Less
Developed Census Tract Areas Based on a Period of Economic Distress. Any
tier 3 county which, in the opinion of the commissioner of community affairs,
undergoes a sudden and severe period of economic distress caused by the closing
of one or more business enterprises located in such county may be eligible for
tier 2 designation. Also, any tier 2 county which, in the opinion of the
commissioner of community affairs, undergoes a sudden and severe period of
economic distress caused by the closing of one or more business enterprises
located in such county may be eligible for tier 1 designation. In addition, any
area composed of ten or more contiguous census tracts which undergoes a sudden
and severe period of economic distress caused by the closing of one or more
business enterprises located in such area may be eligible for designation as a
less developed census tract area; or any area composed of one or more
contiguous census tracts which, in the opinion of the commissioner of community
affairs, with the agreement of the commissioner of economic development, is or
will be adversely impacted by the loss of one or more jobs, businesses, or
residences as a result of an airport expansion, including noise buy-outs, or
the closing of a business enterprise located within such area which, in the
opinion of the commissioner of community affairs, with the agreement of the
commissioner of economic development, results or will result in a sudden and
severe period of economic distress.
(a) In
order to receive consideration for designation as a tier 2 or tier 1 county
based on a sudden and severe period of economic distress caused by the closing
of one or more business enterprises, a county must request designation from the
commissioner of community affairs and must show actual job losses that exceed
the following threshold criteria:
1) If the
unemployment rate of the county has exceeded the state's average unemployment
rate for the previous 3 months, the dislocation must amount to at least 2
percent of the county's labor force.
2) If the unemployment rate of the county was
equal to or less than the state's average unemployment rate for any of the
previous 3 months, the dislocation must amount to at least 4 percent of the
county's labor force.
3)
Documentation of the closing of the business enterprise must generally be
provided in the form of a letter from such business enterprise validating the
closure, documentation of the closure on the web site (for business enterprises
subject to the WARN ACT) for the State Entity designated to receive WARN ACT
notices, and local press releases announcing such closure and the effect of
such closure on the community. For purposes of this provision, a closure will
be defined based on the WARN ACT; Public Law 100-379Section 2(a)(2) as the
permanent shutdown of a single business establishment, or one or more
facilities or operating units within such establishment, if the shutdown
results in an employment loss at the establishment during any 30-day period for
50 or mor e employees excluding any part-time employees.
(b) Counties/census tract areas designated as
tier 2 or tier 1 counties or as less developed census tract areas under the
provisions of this paragraph will remain designated for one year. After one
year, such counties/census tract areas may ask the commissioner of community
affairs to be redesignated for additional years if documentation is provided
that demonstrates a continuing period of economic distress. Documentation of
continuing distress should include:
1)
Information on the local community's efforts to fill the affected space and
create new jobs;
2) Details on the
impact of the business loss on:
(a) the local
community; and
(b) the
state;
3) Information on
the current job market in the affected area of the local community;
and
4) Any additional information
to be considered for such designation.
(c) No designation pursuant to this paragraph
shall displace or remove any other county/census tract area designated as a
tier 2 or tier 1 county or as a less developed census tract area pursuant to
paragraphs (2) or (3) of Department Rule
110-9-1-.02.
(d) In order to receive consideration for
designation as a less developed census tract area based on the closing of one
or more business enterprises, an area must request designation from the
commissioner of community affairs and must provide documentation sufficient to
support that major job losses have occurred or will occur within such area. Any
portion of one or more such contiguous census tracts may be currently
designated as part of an existing less developed census tract area. In
addition, one or more such contiguous census tracts must meet the criteria in
paragraph (3)(b) 2) and (3)(b) 3) of Department Rule
110-9-1-.02. Notwithstanding any
provision of this subparagraph to the contrary, any area composed of one or
more contiguous census tracts which is or will be adversely impacted by the
loss of one or more jobs, businesses, or residences as a result of an airport
expansion, including noise buy-outs, may be designated as a less developed
census tract area. In order to be considered for designation as a less
developed census tract the area requesting designation must show actual job
losses that exceed the following threshold criteria:
1) If the unemployment rate of the area
requesting designation has exceeded the state's average unemployment rate for
the previous 3 months, the dislocation must amount to at least 2 percent of the
area's labor force.
2) If the
unemployment rate of the area requesting designation was equal to or less than
the state's average unemployment rate for any of the previous 3 months, the
dislocation must amount to at least 4 percent of the area's labor
force.
3) Documentation of the
closing of the business enterprise must be provided in the form of a letter
from such business enterprise validating the closure, documentation of the
closure on web site (for business enterprises subject to the WARN ACT) for the
State Entity designated to receive WARN ACT notices, and local press releases
announcing such closure and the effect of such closure on the community. For
purposes of this provision, a closure will be defined based on the WARN ACT;
Public Law 100-379Section 2(a)(2) as the permanent shutdown of a single
business establishment, or one or more facilities or operating units within
such establishment, if the shutdown results in an employment loss at the
establishment during any 30-day period for 50 or more employees excluding any
part-time employees.
(e)
At any time, a request for designation based on a sudden and severe period of
economic distress is sought that meets the criteria established in law and
regulation, the commissioner may grant such designation for a specified period
of time. At any time, a request for less developed census tract designation
based on a sudden and severe period of economic distress is sought that meets
the criteria established in law and regulation, the commissioner will determine
if the request meets the provision for designation and obtain the agreement of
the commissioner of economic development prior to issuing an opinion on the
request.
(5)
Procedures to Ensure Business Enterprises Can Claim Credits in Future
Years. For business enterprises which plan a significant expansion in
their labor forces, the following procedures ensure the business can claim
credits in future years based on the pre-existing tier status, military zone
designation, or less developed census tract designation and without regard to a
particular county or census tract being reclassified in the annual ranking. A
business enterprise which plans for growth and expansion of its labor force may
file a notice of intent with the commissioner of community affairs to preserve
the benefits associated with the tier status, military zone designation, or
less developed census tract designation in an area that has been reclassified
(for example, bottom 40, tier 1, tier 2, or tier 3 county that has received a
new ranking, or a less developed census tract in a tier 2, tier 3, or tier 4
community that has lost its designation). The notice of intent shall state the
county/census tract area in which the business enterprise plans to locate or
expand, the number of new jobs to be created, and the anticipated period in
which these jobs will be created. The notice of intent may only be filed for
business enterprises which plan to create jobs within three years of the date
the notice of intent, except when evidence satisfactory to the commissioner of
community affairs is submitted that demonstrates a high probability that
significant job creation will result within the time-frame submitted in the
notice of intent. Once accepted by the commissioner, the notice of intent will
preserve the prior county tier status, military zone designation, or census
tract designation and allow the business enterprise to claim the related job
tax credits for the three-year time-frame protected by the notice of intent
provided all other program requirements are satisfied as specified in these
regulations and in the O.C.G.A. §
48-7-40,
48-7-40.1, and
36-62-5.1.
(a) The Notice of Intent procedures described
in these regulations are intended to protect companies, for the limited period
of three years, from the results of the annual re-ranking of counties and
census tracts. These procedures, however, do not protect companies from changes
in law unless otherwise specified in law. Protection provided by Notices of
Intent include the following potential impacts from re-ranking: changes in
business eligibility due to ranking outside of bottom 40 counties, changes in
tax credit amount, changes in job threshold, changes in limitations in the
amount of tax liability that may be offset, and changes in ability to apply
credits against payroll withholding.
(b) Notices of Intent must be filed on or
before March 31st of the calendar year first affected by the change in county
or census tract designation. The business must include the name of the
business, the location address of the business establishment creating the jobs,
the type of business establishment including the NAICS code, and a valid
contact on the submitted Notice of Intent.
(c) Notices of Intent apply to the three-year
period that begins January 1st of the year in which the Notice of Intent is
filed, unless evidence satisfactory to the commissioner of community affairs is
submitted that demonstrates a high probability that significant job creation
will result within a future three-year time frame specifically outlined in the
Notice of Intent. However, in no case may the period secured by the Notice of
Intent extend beyond three consecutive years nor beyond five years from the
date of filing the initial Notice of Intent.
(d) Only new jobs created during the
three-year Notice of Intent period are eligible to claim the tax credit
benefits preserved by the Notice of Intent. Maintained jobs, which are eligible
for five years of credits, may still claim these benefits after the Notice of
Intent period has lapsed.
(e)
Notices of Intent may be updated or amended by any business enterprise not more
often than once a year. Should a county be reclassified to a more beneficial
tier status during the Notice of Intent period, the business enterprise may
elect to claim tax credits based on the more beneficial ranking for any new
jobs created.
(6)
Job Tax Credit Program Alternative for Tax Years Beginning 2020 and
2021.
(a) Personal Protective Equipment
(PPE) manufacturer job tax credits are claimed as provided in Department of
Revenue Regulation
560-7-8-.66.
(b) These regulations are further amended by
adding a new subsection related to designation of counties as less developed
areas and tax credits for certain business enterprises, to read as follows:
1) For the taxable years beginning in 2020
and 2021, a taxpayer with a business enterprise that in the taxable year
beginning on or after January 1, 2019, and before December 31, 2019, was
claiming a job tax credit shall have the option to utilize the number of new
full-time employee jobs that the taxpayer claimed in such taxable year or to
continue calculating their credit as in prior years based on the number of net
new full-time employee jobs that the taxpayer added during the tax year (for
both 2020 and 2021).
O.C.G.A. §§
48-7-40,
48-7-40.1,
36-62-5.1.
