Freeport ExemptionThe 100% Level 1 Freeport Exemption is offered by the City and DeKalb County. The exemption is applied to state and local inventory tax on raw materials and goods in process, finished goods held by the original manufacturer, and finished goods held by distributors, wholesalers, and manufacturers destined for out-of-state shipment.
A Level One Freeport Exemption includes the following types of tangible personal property:
- Inventory of goods in the process of being manufactured or produced including raw materials and partly finished goods
- Inventory of finished goods manufactured or produced in Georgia held by the manufacturer or producer for a period not to exceed 12 months
- Inventory of finished goods on January 1 that are stored in a warehouse, dock, or wharf that are destined for shipment outside of Georgia for a period not to exceed 12 months
Georgia Foreign Trade Zone (#26 Service Area)
The FTZ program encourages activity at U.S. facilities in competition with foreign locations by allowing delayed, reduced, and sometimes eliminated, duty payment on foreign merchandise admitted to a zone, as well as other meaningful savings. In the global marketplace, many companies consider moving to foreign locations to reduce operating costs. The benefits of the FTZ program may be the competitive advantage a company needs to keep its manufacturing or distribution operations in the United States. All of Doraville is within Service Area #26. Businesses can apply to the Georgia FTZ Board for the designation. For more information, go to www.georgiaftz.com.
Managed by the U.S. Small Business Administration (SBA), the Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. As of 2016, two Doraville census tracts (213.01 and 213.03) qualify.
A small business must meets all of the following criteria to qualify for the HUBZone program:
Located in a "historically underutilized business zone"
At least 51% owned and controlled by one or more U.S. Citizens
At least 35% of its employees must reside in a HUBZone
For more information about the HUB Zone program go to www.sba.gov/hubzone
New Market Tax Credits
The NMTC Program attracts investment capital to qualifying communities (all of Doraville is NMTC-eligible) by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). The credit totals 39 percent of the original investment amount and is claimed over a period of seven years. The investment in the CDE cannot be redeemed before the end of the seven-year period. The NMTC program is administered by the Community Developments Financial Institutions (CDFI) under the U.S. Treasury Department. The City works with a variety of CDEs on potential NMTC projects. For more information, go to www.cdfi.gov or contact Luke Howe at (770) 451-8745 or firstname.lastname@example.org.
Targted Employment Area (TEA) EB-5
Congress created the EB-5 Program in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors. In 1992, Congress created the Immigrant Investor Program, also known as the Regional Center Program. This sets aside EB-5 visas for participants who invest in commercial enterprises associated with regional centers approved by USCIS based on proposals for promoting economic growth. In non-TEA areas, the minumum EB-5 investment is $1 million. In TEA-designated census tracts, the minimum investment is $500,000. Doraville census tracts 213.01 and 213.03 are TEA. Investments are facilitated through Regional Centers and can be structured as either debt or equity.
U.S. Citizenship & Immigration Services Webpage for EB-5 Resources
Doraville Census Tract Map
Georgia Department of Labor's census tract verifcation letter
The State Opportunity Zone (OZ) designation (map below) affords the Georgia’s highest job tax credit of $3500 per job to any legal business that locates in a state-approved OZ. In order to qualify, the business must create at least two jobs that are new to the State of Georgia (the second one can be claimed). For example: 10 jobs = 9 x $3500 = $31,500 in credits that may be claimed against the company's state income tax liability or, if there's any left over, their state payroll withholding tax. The credit may be claimed for up to 5 years. The program is administered by the Georgia Department of Community Affairs (DCA).
The City's current OZ includes the entirety of the GM site and the adjacent former Seaboard Oil (5810 and 5796 New Peachtree Road) properties. The DCA has since approved two amendments, adding Peachtree Pavilion (6035 Peachtree Rd.) and the former UAW Union Hall (5407 Buford Hwy.).
Map BoundariesDoraville Opportunity Zone (2016)
Opportunity Zone Process:Step 1: Create at least the minimum number of jobs to become eligible. For an overview of the eligibility requirements and claims process, please read this Program Overview.
Step 2: Complete part one of the Opportunity Zone Certification and send a signed copy to Luke Howe, the City Economic Development Director (contact info below). After review by the Georgia DCA, the requesting business and the Economic Development Department will each receive approved copies of the certification.
Step 3: Complete Form IT-CA (2009) to determine the amount of Job Tax Credit that may be claimed. The credit must first be applied against your corporate income tax liability. Any excess credit may be carried forward to future tax years or applied against your Georgia Withholding Tax liability.
Step 4 (withholding): To claim credit against withholding, file Form IT-WH with the Department of Revenue at least 30 days prior to filing the Georgia Income Tax Return on which the credit will be claimed.
Step 5: File the Georgia Income Tax Return by the due date (or extended due date) along with a completed Form IT-CA (2009) and a copy of the accepted Opportunity Zone Certification to claim the Job Tax Credit for the Opportunity Zone.
Step 6 (withholding): The Georgia Department of Revenue will send a letter to the business within 90 days of the date the Georgia Income Tax Return was filed stating the amount of credit available to claim against withholding taxes and when the business may begin claiming the credit.
Resources:Visit the Georgia Department of Community Affairs for full program information or the Department of Revenue for downloadable tax forms.
Opportunity Zone Brochure
Contacts:To inquire about Doraville OZ boundaries, parcels or OZ certification, contact Chris Eldridge at 770-451-8745 or email@example.com. Signed certification forms may be emailed, mailed, or delivered to:
Economic Development Department
Doraville City Hall
3725 Park Avenue, Doraville, Georgia 30340
Please note information above does not constitute tax advice. Business owners are encouraged to seek professional tax advice for tax-related questions and assistance.