Boarded-up buildings in the Harrisburg and Laney-Walker districts might be eyesores, but they are potential opportunities in the right hands.
State and local officials are hopeful businesses and individuals will apply for tax credits in those designated Opportunity Zones to invest in and revitalize the area. So far, however, no one has applied this year, and only four did in 2020.
“The manifestation of the new/updated buildings with new jobs can lead to more goods and services being readily available within these older neighborhoods and speaks directly to the quality of life that the county can offer,” said Danielle Harris, the public information officer for the city of Augusta.
The purpose of the Opportunity Zone is to offer an incentive for businesses to consider locating in blighted areas.
“Once the business locates in the Opportunity Zone where the job tax credits are available, the hope is that the new business will paint, make repairs, and renovate the building they are located in, thus removing blight,” said Adrion Bell, director of marketing and communications for the Georgia department of Community Affairs.
The Laney Walker and Harrisburg neighborhoods were designated as Opportunity Zones more than 11 years ago, with oversight by the Georgia Department of Community Affairs. There are federal opportunity zones, but they are different from the local ones.
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According to the Georgia Department of Community Affairs, 23 businesses in those areas have taken advantage of the Opportunity Zone tax breaks since 2010.
Margaret Woodard, executive director for the Downtown Development Authority, said when she meets with potential developers, she makes them aware of Opportunity Zone funding.
“Opportunity zones certainly help with revitalization. They are an economic development tool that allows people to invest in distressed areas and spur economic growth and job creation while providing tax benefits to investors. Most importantly, they provide the capital stack (as do new market and historic) developers may need to complete a project,” she said.
Danielle Harris, public information officer for the city of Augusta, agreed that local businesses applying for tax credits in the opportunity zones could cause improvements with what seem like potential eyesores there. Local and state officials are encouraging businesses to apply.
“Local governments which undertake redevelopment and revitalization efforts in certain older commercial and industrial areas can now qualify those areas for the state’s maximum job tax credit of $3,500 per job,” she said. “The incentive, which is available for new or existing businesses that create two or more jobs, is a job tax credit which can be taken against the business’s Georgia income tax liability and payroll withholding tax.”
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According to Bell, “Businesses don’t have to reapply each year to DCA, but they can use the tax credits on their Georgia state income tax returns each year for five years as long as the jobs created are maintained for those five years.”
Various types of businesses are encouraged to apply for an opportunity zone credit. Small, medium and large scale commercial, residential and mixed-use developments can qualify, Harris said.
Businesses applying for this tax credit will benefit, but average citizens will as well.
“Average citizens would benefit by way of the newly created jobs, jobs retained, and goods and services that the new businesses would add,” she said.
Local and county governments will benefit from the businesses applying for the tax credit in several ways.
“New job opportunities attract new residents in addition to the redevelopment of dilapidated structures or the infill of vacant lots,” Harris said.
Ron Baxley Jr. is a correspondent for The Augusta Press.
